Investors relying on their portfolio to replace traditional sources of income can choose “natural income” or “decumulation”. Each has its merits.
Reliable income is much harder to find now than in the past. We examine the reasons for this and look at how asset managers can help investors achieve sustainable higher income.
A flexible and pragmatic approach will be required as strategies which have been effective over the past five years may be less likely to perform in the next few years.
Our research, which looks at episodes of rising rates since 1970, suggests income-producing assets don’t perform as investors might expect.