24MAR 2023
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.
Past performance is not a guide to future performance and may not be repeated.
The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.
*Source: Schroders as at 31 December 2019
Important information:
Schroders has expressed its own views and opinions in this webpage and these may change. This webpage is intended to be for information purposes only.
The material is not an offer, solicitation or recommendation to buy or sell any financial instrument or to adopt any investment strategy.
The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in the webpage when taking individual investment and/or strategic decisions. No responsibility can be accepted for errors of fact or opinion.
Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy.
Past performance is not a guide to future performance and may not be repeated.
The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.
The data contained in this webpage has been obtained from sources we consider to be reliable. No responsibility can be accepted for errors of fact and the data should be independently verified before further publication or use.
Any references to securities, sectors, regions and/or countries are for illustrative purposes only.
In North America, this content is issued by Schroder Investment Management North America Inc., an indirect wholly owned subsidiary of Schroders plc providing asset management products and services as a US SEC registered investment adviser and in the capacity of Portfolio Manager with the securities regulatory authorities in Canada. For all other users, this content is issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.
Schroders is a world-class asset manager operating from 38 locations across Europe, the Americas, Asia, the Middle East and Africa.
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