Low interest rates, rising living costs, limited wage growth and an ageing population mean your clients are likely to need income more than ever. Yet consistently higher income is hard to find. In the past, bank deposits and “safe-haven” investments like government bonds filled the gap, but returns from these savings options have dropped to near record lows. There is no reason to imagine the situation will improve in the years ahead.
To meet your clients’ income expectations, you will almost certainly have to seek solutions from further afield than in the past. This means drawing from a wider range of investments, such as equities, corporate bonds, property and multi-asset solutions. As a result, a significantly higher level of expertise is now required.
We can help. With our expertise in this area, we have delivered income for thousands of investors over many years. Our team of over 40 income specialists is able to search global markets for the very best opportunities. Our skill is to analyse the value and risk of these opportunities to meet income targets consistently.
We believe active investment management is crucial when it comes to delivering income. Active management means being able to consider the widest range of investment opportunities across the world, analysing these opportunities to ensure they are reliable and, importantly, paying the right price. Active management is also the skill of diversifying investments in order to deliver an income solution whilst managing the risks.
Our wide range of income funds and portfolios is designed to address many of your clients’ income needs. Whether this is through equity income funds, fixed income products or multi-asset solutions we have options for you.
For clients with a long-term horizon, this could mean offering higher yields and capital return potential, but with the trade-off of greater volatility. Or, for clients with a shorter-term objective, it could mean offering lower yields with lower risk of drawdown.