Illustration: Nathan Oser
How should I allocate for income?
4 July 2019
Quantitative easing, negative rates and comforting “lower for longer” whispers from policy makers have boosted asset prices but depressed yields - meaning the old rules of thumb no longer work. Which makes it hard for investors looking for income. In this edition we tease apart the options, take you past the pitfalls and offer up some cutting edge thinking. How should I allocate for income? Here, Fidelity Answers.
An appeal to optimism: The opportunity of the uncertainty premium
The demand for safety since the financial crisis has created an uncertainty premium that investors with a little optimism can take advantage of.
In charts: How demographic change is driving demand for income
Ageing populations and a growing class of wealthy baby boomers are expected to continue driving demand for income.
Q&A: How do income and yield differ?
Investing in income funds can be confusing around terminology and approach. This Q&A should help investors make informed decisions.
Podcast: How to manage a portfolio for income
Three portfolio managers with a a focus on income strategies in different asset classes discuss how they go about building for income in uncertain times.
Contractualised income: Low risk, not no risk
A forward-looking assessment of business risk is needed when investing in long-term secure income assets.
Equities, fixed income and multi asset: three different paths to income
Income-focused funds cover all asset classes and are a compromise between risk, yield, predictability and sustainability as well as capital preservation.
How to allocate for income in emerging market debt
Exposure to currency risk, credit quality, and corporate or sovereign debt across the EM fixed income space are key considerations when investing for income.