search menu Home > Sanlam Investments > Our fund range FIXED INCOME SVS Sanlam Fixed Interest Fund A high-conviction portfolio investing in corporate credit. Typically, at least 80% of the Fund will be invested in investment-grade bonds with any non-GBP-denominated bonds hedged to sterling. Launched in May 1995 the Fund aims achieve a high income through investing primarily in a variety of investment grade fixed interest instruments without geographical restriction and preference shares in UK and European community companies. The fund Targets high income. Invests across a wide range of investment-grade bonds, including many household names. Seeks to balance credit, interest rate and liquidity risks judiciously. Sections: 5 reasons to invest Philosophy 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 ESG Investment process Core corporate bond fund - can either be a standalone corporate credit investment or the credit component of a wider portfolio Expertise in financials – a key segment of the corporate bond market Active duration management – credit is a long duration asset class and thus sensitive to changes in risk-free rates Good access to the primary market Sophisticated management of risk and ESG factors We have excellent access to the primary market and new issues. Darren Reece, Fund Manager Fund Commentary Monthly Commentary Quarterly Update October 2021 Market/macro backdrop Interest rate carnage, particularly 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 The Fund produced a performance of -0.41% in October (source: Morningstar – A Acc units). For comparison, the IA £ Corporate Bond sector median produced a performance of 0.05%. For 2021 year to date, we continue to outperform the IA sector (source: Morningstar). Past performance is not a guide to future performance. Total return, NAV to NAV basis, net of charges. 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 re-pricing of risk-free rates. At the individual credit level, Adler was a poor performer after the stock became the target of a short seller (Viceroy Research). Whilst we believe some of the issues raised have a degree of justification, we have decided, after a period of extensive debate within the team, to maintain the position. Moreover, political risks for German real estate have started to ease now that the elections are over. Significant portfolio changes - buy/sells We started a new position in the Blackstone Private Credit Fund – this is a stand-alone company but run by Blackstone as investment adviser. It’s an investment garde issuer and made its debut deal in euros. The company is growing rapidly due to the huge expansion in private credit. We also started a new position in Royal London, buying the 6.125% 2028 bonds as well as starting a position in the 4.875% 2049s which are callable in 2039. Fund/corporate/team highlights NA Outlook Monetary 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 high-conviction portfolio investing in corporate credit. Typically, at least 80% of the Fund will be invested in investment-grade bonds with any non-GBP-denominated bonds hedged to sterling. 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 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.