Do hybrids still offer attractive yield?

Hybrid investments are financial instruments that combine features of both debt and equity. They are considered complex because they have unique characteristics and risks that differ from traditional stocks or bonds, making them harder to understand for everyday investors.

A portfolio approach is recommended for hybrid investments due to their complexity and associated risks. By diversifying across multiple hybrids, investors can potentially reduce risk and achieve more stable returns.

The InvestSMART Hybrid Income Portfolio is a managed investment portfolio designed to provide returns from hybrid securities. It aims to achieve a return of 3% above the RBA cash rate, with an estimated current income of 5.2%.

The portfolio aims to achieve its returns by investing in a diversified range of hybrid securities, targeting a return of 3% above the RBA cash rate. This approach helps manage risk while seeking attractive yields.

Hybrids can play a significant role in a fixed interest investment strategy by providing higher yields compared to traditional fixed income securities. They offer a balance between risk and return, making them a valuable component of a diversified portfolio.

The current estimated income of the InvestSMART Hybrid Income Portfolio is 5.2%. This reflects the portfolio's strategy to achieve returns above the RBA cash rate through diversified hybrid investments.

Alastair Davidson is the Head of Funds Management at InvestSMART. He provides insights and updates on the InvestSMART Hybrid Income Portfolio, discussing how hybrids are integrated into the fixed interest component of investment strategies.

You can find more information about the InvestSMART Hybrid Income Portfolio by visiting InvestSMART's website or contacting their investment team for detailed insights and updates on the portfolio's performance and strategy.