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
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
