Fixed-income investment management firm, Cameron Hume, has been appointed by Sanlam to manage the Sanlam USD Enhanced Yield Fund.
The Sanlam USD Enhanced Yield Fund has been designed with detailed input and collaboration from the Cameron Hume investment team and is an enhanced money market product which will be meaningful to a wide range of cash investors.
The objective of the fund is to achieve an annualised return in excess of 0.75 per cent over the USD Secured Overnight Financing Rate, measured over rolling 12-month periods. The Fund will seek to achieve its investment objective by investing directly or indirectly in a highly diversified portfolio of USD denominated debt securities and money market instruments with maximum expected maturities of five years. The fund will be managed on a short duration basis, with a maximum allowable interest duration of one year while maintaining at least five percent of NAV in overnight maturities.
Chief investment officer at Cameron Hume, Guy Cameron, says: “This fund sits at the core of the Cameron Hume vision that cash is an asset class in its own right, with different client requirements that demand individual solutions.
“Our cash investment process is built on the core requirements of cash management, capital preservation, provision of requisite liquidity, and the generation of competitive returns.
“In addition to these key requirements, we integrate Environmental, Social and Governance (ESG) factors into our investment process. We were among the first investment management firms to do this, and we believe that it helps to make us better investors by enabling us to select issuers that have taken the greatest steps to consider and mitigate their exposures to ESG risks. We believe that these issuers have an advantage over those that have failed to manage their ESG exposures and this helps to improve the quality of our investments.
“Our proprietary data analytics engine, CaTo, further enhances our investment process by helping us to consider a broad range of fixed income opportunities to add value to our client’s portfolios.”
The fund launch follows the appointments of Brian Jack as head of Money Markets and Andy Kelly as Business Development manager and will leverage their skills and expertise.