InvestSMART Hybrid Income Portfolio

We’ve trimmed our position in IAGPD as they are expensive vs the major bank hybrids and we intend to reduce this position toward zero over time, given liquidity.

We are also trimming our position in SUNPG as it too is relatively expensive. Considering we only received a small position in the offer we have decided to remove this from the portfolio.

Westpac recently announced a reinvestment offer to roll WBCPC into a new capital note to and we intend to participate.

The net effect of the above changes will increase cash by around 2.3%. We are happy holding a higher cash balance given recent strong performance and heightened volatility in equity and credit markets.