InvestSMART

Investing in Hybrids for Income

InvestSMART's Head of Funds Management, Alastair Davidson answers members questions on hybrids and its benefits to the income focused investor.
By · 3 Aug 2017
By ·
3 Aug 2017 · 4 min read
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Hybrids are complex investment instruments. You just need to look at a 150-page prospectus for one to see this.

Introducing InvestSMART's Hybrid Income Portfolio

The advantage of InvestSMART's Hybrid Income Portfolio is our that the investment team at InvestSMART have hand-picked a collection for you to form a portfolio with the aim of providing investors with above market yield and lower volatility. 

Hybrids are not without their risks. Our experts select the ones to hold, what price to hold them at and which ones to avoid to build a diversified portfolio. With most hybrids starting at $100 per share, investors may find diversification hard to come by while still holding a meaningful parcel.

Our portfolio of 10 – 20 hybrids starts at a minimum investment of $25,000 and gives you instant diversification and lowers risk by spreading your funds across a number of hybrids and not just one or two.  

Watch the recording of our Q&A: Investing in Hybrids for Income, with InvestSMART's Head of Funds Management, Alastair Davidson as he answers members questions and the benefits it can offer to the income-focused investor.

Topics covered:

  • Estimated annual income and how you can receive it;
  • The difference between hybrid structures;
  • Why diversification in hybrids is important;
  • The risks associated with hybrids.

Following the Q&A, we also received questions regarding our position in National Income Securities (NABHA). Read the article on the NABHA security.

Duration: 25:49 mins 

Find out more about the InvestSMART Hybrid Income Portfolio

 

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Alastair Davidson
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