Our best investment ideas for consistent income

To meet the different financial goals of a wide range of investors, investing for income has become increasingly important. Whether it's regular income for retirement, or funding your children's overseas education, generating a steady stream of consistent income is likely to be a priority for many investors.

With a focus on diversification, the right blend of income-generating assets can be pulled together with the aim of achieving a strong and sustainable level of income as well as grow capital, irrespective of the global macro environment, over the medium-to-long term.

"In a market where yields across many asset classes are low, our Global Multi Asset Income Fund provides a cost-effective solution for investors seeking quality, sustainable income whilst keeping volatility in check."
Maya Bhandari, Portfolio Manager

Threadneedle(Lux) Global Multi-Asset Income - Ezine

Discover more about Global Multi Asset Income Fund

Key reasons to invest

  • The portfolio manager invests in proven income capabilities across equities and fixed income, then supplementing the income using a covered call option.
  • Our focus is on quality; within fixed income we have been able to achieve high yield without going significantly down the credit spectrum. Within equities, we believe dividends are an under-appreciated signal of investment quality and we look for companies that can generate sustainable dividend growth.
  • Our well-diversified portfolio aims to provide an annual income of 5%1 with strong risk-adjusted returns by capturing the upside while seeking to protect the downside, with less volatility than an equity-only strategy.
  • Portfolio manager is supported by more than 20 investment experts, including an eight-strong Asset Allocation Strategy Group to draw on the wider investment platform for macro insights, information and proprietary research, generating richer perspectives on global, regional and local investment landscapes.
  • Established range of multi-asset portfolios where we manage $133.9bn in multi-asset investments, comprising 27.7% of total firm assets2.

1 Please note that the performance target may not be attained.
2 Data as at 30 June 2018.

Fund Objective

The aim of the Fund is to provide income with the potential to grow the amount you invested over the medium to long term. At least two-thirds of the Fund's assets will be in positions in companies and bonds (which are similar to a loan and pay a fixed or variable interest rate) issued by companies and governments worldwide. The amount of the Fund that is invested in the different asset types will vary over time as the Fund seeks to achieve its aim.

The Fund will invest in these assets directly or indirectly by using derivatives. Derivatives are sophisticated investment instruments linked to the rise and fall of the price of other assets. Derivatives will be used to obtain, increase or reduce exposure to underlying assets and may create gearing. Where gearing is created, the net asset value of the Fund may experience more fluctuation than if there were no gearing. The Fund may also invest in asset classes and instruments different from those stated above.

Key Risks

Investment risk: The value of investments can fall as well as rise and investors might not get back the sum originally invested. Liquidity risk: The fund holds assets which could prove difficult to sell. The fund may have to lower the selling price, sell other investments or forgo more appealing investment opportunities. Leverage risk: Leverage amplifies the effect that a change in the price of an investment has on the fund's value. As such, leverage can enhance returns to investors but can also increase losses, including losses in excess of the amount invested. Investment in funds: The Investment Policy allows the fund to invest principally in units of other collective investment schemes. Investors should consider the investment policy and asset composition in the underlying funds when assessing their portfolio exposure. Currency risk: Where investments are made in assets that are denominated in multiple currencies, changes in exchange rates may affect the value of the investments. No capital guarantee: Positive returns are not guaranteed and no form of capital protection applies. Issuer risk: The fund invests in securities whose value would be significantly affected if the issuer either refused to pay or was unable to pay or perceived to be unable to pay. Interest rate risk: Changes in interest rates are likely to affect the fund's value. In general, as interest rates rise, the price of a fixed rate bond will fall, and vice versa. Valuation risk: The fund's assets may sometimes be difficult to value objectively and the actual value may not be recognised until assets are sold. Investment in derivatives: The Investment Policy of the fund allows it to invest materially in derivatives. Volatility risk: The fund may exhibit significant price volatility. Inflation risk: Most bond and cash funds offer limited capital growth potential and an income that is not linked to inflation. Inflation is likely to affect the value of capital and income over time.

Maya Bhandari

Maya Bhandari is the lead manager of the Threadneedle (Lux) Global Multi Asset Fund since December 2015, prior to this she was the co-portfolio manager. As a portfolio manager and member of the Global Asset Allocation team, she is also responsible for managing and co-managing a range of multi-asset portfolios, as well as providing strategic and tactical input to the company's asset allocation process.

Before joining the company, Maya spent over 10 years advising buy-side companies on their multi-asset strategies. Most recently, she was a strategist and director at Citigroup within the Global Macro Strategy & Asset Allocation team where she developed broad global macro themes and investment ideas across asset classes. She was also a member of the Citi Private Bank's Investment Committee, where she advised the private bank on their asset allocation decisions. Prior to that, she spent six years at Lombard Street Research, latterly as head of Emerging Markets Analysis, whilst also previously working as a senior economist and strategist. Maya started her career as an economist for the European Commission.

Maya holds an MA (First Class Honours) in Economics from Edinburgh University, and a MPhil in International Relations from Cambridge University.


View the Threadneedle (Lux) Global Multi Asset Fund brochure


Columbia Threadneedle multi-asset strategy aims for consistent income

The Business Times, 28 March 2018

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