Income is still out there: weighing up bonds and shares

October 7, 2019

CEO Damien McIntyre writes for The Australian:

With interest rates hovering around historic lows globally, investor appetite for alternative income sources has markedly increased. In the current environment, uncertainty is writ large; challenges come at investors from all angles — global and domestic, as well as longer-term structural challenges.

Although the US Federal Reserve recently raised rates, interest rates in Australia are at a record low and, according to government rhetoric and the Reserve Bank, are heading lower. Low interest rates create a problem for investors, advisers and investment managers — how do we create sufficient returns and adequate income to meet investors’ needs?

In numerous cases, investors are going further out on the risk curve to generate a nominal return to meet their income needs.

To read the article, click here.

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