Broader income set needed for retirees
Retirees and other income-seeking investors will need to adopt a broader investment approach to ensure a consistent income stream, according to Goldman Sachs Asset Management’s Angus Bell.
As investors move funds out of cash, they will require a diversified set of income-generating assets to avoid being bound by the ebb and flow of one asset, he said.
“If you’re an investor and you’ve got a heavy concentration to one particular income-producing asset, then really you have to accept the ebb and flow of how that asset class will typically perform over the business cycle,” he said.
“We’re in a part of the business cycle where particularly retirees and people looking for income will need to think about a broader approach to trying to source that income.”
Bell said a multi-asset approach derived value from the offsets it produced and harked back to the old story of diversification.
“When you’re taking a broad opportunity set across a different range of income-producing assets, you get this natural diversification effect and it’s allowing for the different offsets,” he said.
Recommended for you
Two commentators have shared why the inclusion of alternatives in a diversified portfolio shouldn’t be a simple switch with a traditional asset and will depend heavily on clients’ objectives.
Morgans chief executive, John Clifford, has announced he will step down from the wealth management group after eight years leading the business.
Funds under administration on the BT Panorama platform have passed $120 billion in the last six months as it progresses its migration of Asgard into the platform.
Private markets may be the hot topic of the day but two financial advisers have shared the red flags to consider and why advisers shouldn’t be tempted to invest solely in the pursuit of higher returns.
