search menu Home > Sanlam Investments > Our fund range FIXED INCOME Sanlam Credit Fund The Sanlam Credit Fund aims to generate income, net of all expenses, equivalent to the Bank of England’s UK Base Rate plus 1-2%, with low to medium volatility. The Fund aims to generate income, net of all fees, equivalent to the Bank of England UK Base Rates plus 1-2% from a corporate bond portfolio with low to medium volatility. The fund: Adopts a bottom-up approach investing in high quality issuers with an investment grade profile and cash plus return A short duration investment with minimal interest rate sensitivity Uses no derivatives, contingent convertibles, equities, leverage or structured products Sections: 5 reasons to invest Philosophy The 4 pillars ESG Investment process Fund commentary Related articles Fund literature Factsheet KIIDs Regulatory Fund information Meet the Sanlam Fixed Interest Team Peter Doherty Head of Fixed Income View profile Guillaume Desqueyroux Fund Manager View profile Darren Reece Fund Manager View profile Why invest in the fund? 5 reasons to invest Fund philosophy The 4 pillars ESG Investment process Short duration approach means low sensitivity to wider bond market volatility or fears of inflation Team has extensive experience across the credit market with complementary skills throughout the team. French flair and a battle-hardened Brit! Sentiment towards Financials remain poor after the Global Financial Crisis. Our extensive knowledge and research identifies significant opportunities in what is more of a ‘utility like’ sector Sanlam’s position as a recognised expert in credit means that we have good access to the primary (new issues) market – where demand exceeds supply Transparency and scalability of our process – no leverage, CoCos (Contingent Convertible Securities), derivatives, structured products or equities. The Fund's strategy of intensive credit fundamental analysis, alongside imaginative security selection, driven by a short duration emphasis should alleviate some of the headwinds that Fixed Income investors may face Guillaume Desqueyroux, Fund Manager Fund Commentary Monthly Commentary Quarterly Update October 2021 Interest rate carnage at the very front end of government bond curves as inflation is suddenly everywhere, impacting Fixed Income markets generally, resulting in a negative performance for the Credit Fund for the first time since April 2020. There is no rulebook for how central banks withdraw liquidity after an extended period of low interest rates which is unnerving investors further. Monetary conditions are tightening, and supply chain bottlenecks are starting to take their toll on the global economies. At the same time, inflationary pressures are proving more persistent than previously expected. As the major central banks continue to operate a ‘wait-and-see’ approach to raising interest rates, The markets are beginning to price in that hesitancy believing that ‘policy errors’ are becoming a further risk. As this monthly report goes to press, we note that the Bank of England’s Monetary Policy Committee meeting concluded that interest rates will remain unchanged but that some modest tightening of monetary policy over the forecast period was likely to be necessary. The main themes that contributed to the negative month were: the elevated interest rate volatility, the repricing of interest rate expectations higher, and more importantly the risk aversion spreading across corporate bond markets. Explore the details The Sanlam Credit Fund aims to generate income, net of all expenses, equivalent to the Bank of England’s UK Base Rate plus 1-2%, with low to medium volatility. Read the latest factsheet Related articles VIDEO 04 November 2021 What makes Hybrid Capital unique? Peter Doherty, Head of Fixed Income at Sanlam Investments talks about what makes Hybrid Capital unique and how it’s used to balance diversification and risk. INSIGHTS 02 September 2021 Sanlam Credit Fund Five-Year Anniversary We are delighted to celebrate the fifth-year anniversary of the Sanlam Credit Fund, launched on the 31st August 2016, managed by Peter Doherty, Guillaume Desqueyroux and Darren Reece. INSIGHTS 02 September 2021 Sanlam Hybrid Capital Bond Fund Five-Year Anniversary Since launch five years ago, the Sanlam Hybrid Capital Bond Fund has delivered a total return of 42.1%, placing it at the top of the Investment Association’s (IA) Strategic Bond sector over the period. Read all Fund Risks Past performance is not a guide to future performance. Do remember that the value of an investment and the income generated from them can fall as well as rise and is not guaranteed, therefore, you may not get back the amount originally invested and potentially risk total loss of capital. A table with five years’ performance is available in the fund factsheets. The fund will invest in debt securities. The government or company issuer of a bond might not be able to repay either the interest or the original loan amount and therefore default on the debt. This would affect the credit rating of the bond and, in turn, the value of the fund. Investment in bonds and other debt instruments (including related derivatives) is subject to interest rate risk. If long-term interest rates rise, the value of your shares is likely to fall. The fund may invest in in derivatives for the purpose of hedging, efficient portfolio management and/or investment purpose. There is a risk that losses could be made on derivative positions or that the counterparties could fail to complete on transactions. The Fund may engage in transactions in financial derivative instruments for Share Class hedging purposes only. There is a risk that losses could be made on derivative positions or that the counterparties could fail to complete on transactions. Ready to invest? Contact us Create a downloadable brochure You can use these buttons to add a page, edit, or print your own brochure Add to brochure Add to brochure Brochure 0 Print Share Contact Us Terms of Use Website Privacy Policy Cookie Policy Modern Slavery Act Transparency Statement Accessibility Legal and Regulatory Sitemap © Sanlam. All rights reserved. Sanlam UK Limited is the provider of the Sanlam website. If you would like to view the regulatory and legal status of each Sanlam company to which this website relates, and the services and products which they provide, please click here. Please agree to proceed. By doing so you agree that you have read and understood the foregoing disclaimer and confirm that you are a professional investor. View disclaimer Cookie Consent We have to collect some data when you use this website so it works and is secure. We'd also like your consent to collect data to study how people use our site. This will help us improve our service and tailor the marketing you see on apps and other websites. Select 'Accept all' to agree or 'Manage consents' to chose which cookies we use. Accept all Manage consents The value of investments and any income from them can fall and you may get back less than you invested.