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’
Investing in different asset classes has proven to be beneficial for investors as their risk is mitigated and it presents greater chances of returns.
“This crisis has highlighted once again the importance of diversification,” Bradshaw added. “Not only can this help protect your investment returns when markets are volatile, but ensuring your income is diversified by both geography and sector can also help increase its resilience in times of stress.
“For example, the UK equity market has been an income seeker’s friend over the long-term, but those dividends are concentrated to just a handful of companies.
“Even prior to this crisis, at the end of 2019, just 10 companies accounted for 50% of the FTSE All-Share’s yield. There are opportunities elsewhere that can help support your dividend stream and lead you away from such concentration risk.”
Bradshaw said an example of this is the Assura Group – current yield 3.5%
“Even within UK property, there are opportunities outside the traditional commercial sector that can help diversify your income stream.
“Assura Group is a leading investor and developer in modern purpose-built healthcare properties, principally let to GPs and primary care trusts in the UK.
“Its long and inflation-linked leases are effectively government backed and as a result, investors can take confidence that the income will be more resilient despite a more challenging economic backdrop,” she added.
