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.
*Source: Schroders as at 31 December 2019
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