How to enhance investor income if a second covid wave hits
By Cristian Angeloni, 13 Aug 20
In the current circumstances, clients ‘must be feeling like there is nowhere to turn’
If the principal asset classes are not as profitable as they were pre-pandemic, there is a pool of less traditional investments people could turn to.
“In recent years, the range of ‘alternative’ investment options available to investors has expanded in size, depth and breadth and now encompasses a wide range of asset classes from specialist property to infrastructure, renewable energy and even music royalties,” Bradshaw said.
“Not only do alternatives typically have a lower correlation to more mainstream assets, but there are a number that offer an attractive level of income that is less sensitive to the economic backdrop.”
One example of this is Hipgnosis Songs Fund – current yield 4.3%.
“Hipgnosis is a unique alternative investment in the fact it buys music catalogues and investors receive an income from the royalties generated from these songs.
“With a fairly eclectic mix of music in the portfolio, including the Kaiser Chiefs and Mark Ronson, income from this investment trust can be a good diversifier within a portfolio given the underlying drivers are less correlated to the economic cycle.”
