The fundamental search for high and rising income can come at the cost of increased complexity – and, in some cases, increased risk that might not be that easy to assess for suitability when using traditional, asset allocation sector analysis methods.

This challenge is a very specific one faced by the traditional investor base seeking income – typically those heading into or at retirement.

But as we move on from the period of unprecedented low volatility, yield compression and strong stock market returns of recent years, it stands to reason that managers who are trying to provide a fixed income distribution rate have often been forced to up the risk scale.

It’s therefore important to understand the asset manager’s philosophy and track record regarding income generation and how the competing requirements of income generation and capital preservation have been reconciled. Or, put another way, examining the outcome and the journey over the investment duration.

Investors who have embraced risk over recent years have certainly been rewarded, but how can they be better prepared for the expected risks over the horizon?

Take a look at our new Multi-Asset Income Focused Research reports, now available in Dynamic Planner’s Portfolio Suitability Hub (post login).

In them you will find a wealth of resource at your fingertips that can help you evaluate suitability for your clients and understand the manager’s approach to generating income and protecting underlying capital.

Research and Recommendations