Preview
Many investors take a one-dimensional approach to income investing, based broadly around a single asset class. However, a portfolio based on this philosophy is unlikely to deliver a persistent stream of stable income, due to its inability to capture attractive yield opportunities as they arise elsewhere. This is particularly true in times of heightened market volatility, when it becomes harder to generate reliable income streams, potentially leaving single-asset investors with insufficient income to meet their needs.
Multi-asset investing is powerful because it allows well-managed portfolios to access a broad range of asset classes and securities, including the full breadth of the corporate capital structure. Tailoring exposure to a variety of investments in a nimble, innovative and flexible way can allow a portfolio to generate income in all market conditions and, crucially, maintain the potential for further capital appreciation.
WHAT ARE THE RISKS?
All investments involve risks, including possible loss of principal. The value of investments can go down as well as up, and investors may not get back the full amount invested.
The positioning of a specific portfolio may differ from the information presented herein due to various factors, including, but not limited to, allocations from the core portfolio and specific investment objectives, guidelines, strategy and restrictions of a portfolio. There is no assurance any forecast, projection or estimate will be realized.
Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.
Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in an investment portfolio adjust to a rise in interest rates, the value of the portfolio may decline.