View the article online at http://citywire.co.uk/wealth-manager/article/a737519
Income hunt: innovative investors turn to unconventional sources
by Eleanor Lawrie on Mar 05, 2014 at 09:51
Elsewhere, investors not comfortable investing in alternative assets could diversify their portfolio geographically, by investing in an area where negative sentiment is priced in, or a region that is not traditionally looked to for income.
‘Having a global reach and thinking innovatively is important, especially when you look at what traditional assets are giving you,’ he says.
Last year, the fund upped its exposure to European peripheral debt in Italy and Spain, to create a portfolio of bonds yielding 4-4.5%, capitalising on negative perceptions.
‘The reality is if there is negative news flow in Europe, the valuations won’t be there, so you get paid for taking that risk,’ he said.
As the outlook for the troubled eurozone has improved in the last few months, Sheikh has been compelled to switch out of peripheral securities and into European equity, which is giving him a yield of around 5%.
Whether investors choose to diversify by geography or asset class, it is clear they are going to have to work harder and be more flexible in order to secure significant levels of income in their portfolios.
News sponsored by:
As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
Today's top headlines
The Citywire guide to investment trusts
Investment trusts have proved to be a highly effective way to invest in the market. Citywire has interviewed the experts to find out more.
With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop
More about this:
Look up the funds
Look up the shares
Look up the investment trusts
- Greencoat UK Wind (Ordinary Share)
- HICL Infrastructure C (Ordinary Share)
- John Laing Infrastructure (Ordinary Share)
- GCP Infrastructure Investment (Ordinary Share)
Look up the fund managers
On the road
J.P. Morgan Elect on investment growth, income and cash. More information on J.P. Morgan investment trusts.
by James Phillipps on Jul 23, 2014 at 14:34