This is the secret to a diversified portfolio (Part 2)

So what if I told you there was a way you could minimise the volatility one traditionally gets in equities, but make a similar return, yet only having the risk level of a government bond?

I know what you’re thinking: “Tell me more, tell me more! “

Well friends, look no further than hybrid securities

In part one of this collection, I offered you a Hitchhiker’s Guide to Hybrids, explaining the ins and outs of this complex asset class. Now I bring to you part two which will explain why hybrids are so important for a portfolio, and how to incorporate them. 

For this question, I had to bring in the big dogs so I reached out to three of Australia’s top fixed-income specialists with a particular interest in hybrids, including Campbell Dawson from Elstree Investment Management.

Read Part 2 of the Hitchhikers Guide to Hybrids series here.