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 high 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. As experts 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 analyze 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. It is the main way we can ensure your clients not only pay the right price for the income they seek but also receive consistent payments, while managing the risk to their capital investment.
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.
The views and opinions contained herein are those of the authors, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This webpage is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the webpage when taking individual investment and/or strategic decisions. 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. 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. The sectors shown are for illustrative purposes only and not to be considered a recommendation to buy or sell. Exchange rate changes may cause the value of any overseas investments to rise or fall. All investments, domestic and foreign, involve risks including the risk of possible loss of principal. Investing in equities involves risk considerations, including market risk, prospects of stocks in the portfolio, changing interest rates, and real or perceived adverse competitive industry conditions. Investing in bonds may include interest rate, credit, inflation/deflation risk, mortgage and asset-backed securities, U.S. Government securities, and liquidity risks, to varying degrees. Investing overseas involves special risks including among others, risk related to political or economic instability, foreign currency (such as exchange, valuation, and fluctuation) risk, market entry or exit restrictions, illiquidity and taxation. These risks exist to a greater extent in emerging markets than in developed markets. The use of derivatives involves risks different from, or possibly greater than, the risks associated with investing directly in the underlying assets. Private assets are intended only for qualified and/or sophisticated investors and carry special risk considerations, including illiquidity risk, wide differences in valuations, the use of leverage, and higher credit risk than traditional assets. Asset allocation and diversification cannot ensure a profit or protect against loss of principal. No investment strategy, capability or technique can guarantee it will achieve its stated objective. 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. Authorized and regulated by the Financial Conduct Authority.