search menu Home > Sanlam Investments > Our fund range FIXED INCOME Sanlam Short-Dated Corporate Bond Fund A portfolio of primarily investment-grade short dated corporate bonds. Launched in April 2009 the Fund seeks to provide income and ready access to capital by investing in Sterling, Euro and Dollar corporate bonds of no more than six years’ maturity. The fund A pioneer in the short dated universe in the aftermath of the global financial crisis. Seeks to balance interest rate, credit and liquidity risks judiciously. Managed by a highly experienced team. 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. We have excellent access to the primary (new issues) market – where demand exceeds supply Darren Reece, Fund Manager Fund Commentary Monthly Commentary Quarterly Update October 2021 Market/macro backdrop Interest rate carnage at the very front end of government bond curves was very much in evidence in October as inflation is suddenly everywhere, impacting fixed income markets generally. Unfortunately, there is no rulebook for how central banks should withdraw liquidity after an extended period of low interest rates and this is unnerving investors further. Performance vs sector/benchmark The Fund produced a performance of -0.9% in October (source: Morningstar – A Inc Share class). The Fund is not managed against a specific benchmark or sector. Past performance is not a guide to future performance. Total return, NAV to NAV basis, net of charges, assumes net income reinvested. Positive and negative contributors The general positive contributor in performance terms was our focus on a fully diversified blend of good quality financial and non-financial corporate credits, which helped to mitigate some of the damage caused by the aggressive re-pricing of the front end of the yield curve. However, due to the Bank of England’s very hawkish tone on rates during the month and concerns that rate tightening could come sooner (and potentially harder) than had been expected, the short end of the UK market was very volatile and as such our short duration stance in the UK did not afford us as much protection as we would ordinarily expect. Moreover, despite generally healthy corporate balance sheets, some risk aversion has now started to appear in credit markets at a time when spreads are still quite rich relative to long-term averages. Significant portfolio changes - buy/sells Our focus in October was to protect the Fund, given the backdrop in risk-free rates. However, we remain sensitive to credit-specific risks and decided to exit Adler after the company’s stock became the subject of a short-selling attack by a hedge fund. We also sold our position in Deutsche Bank’s 2.625% 2024 bond and exited our position in specialist insurer Hiscox. Fund/corporate/team highlights NA OutlookMonetary conditions are tightening, and supply chain bottlenecks are starting to take their toll on 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 MPC 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. Explore the details A portfolio of primarily investment-grade short dated corporate bonds. 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 invests in short-dated bonds. Investment in bonds and other debt instruments is subject to interest rate risk and credit ratings. 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. If long-term interest rates rise, the value of your shares is likely to fall. Exchange rate changes may cause the value of investments to go down as well as up. 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.