Investing for Income
October 11, 2016
Income investing has been in great demand among investors in recent years. We believe that income generation will continue to be at the forefront of investor needs. Aging population, deleveraging, regulation and the middle class squeeze are all trends that are further exacerbating the need for income. In our view, the traditional source of income, such as government bonds, can no longer meet investor needs, as their yields have continued to be at very low level. In the search for income strategy, investors might consider to enlarge their investment universe, but be aware of the risks associated with potentially higher yielding assets. We think that an investment approach focused on broadening income sources while managing risk can benefit investors in a low yield environment.