The income space is challenging but alternatives can offer uncorrelated access to income investing relative to equities or bonds, says Architas senior investment manager Nathan Sweeney.
Speaking in the above video, which continues Professional Adviser's Architas Advent Calendar counting down to Christmas, Sweeney reviews how central bank monetary policy has changed the landscape for income investors.
If you put your money in the bank pre-2007, he suggests, you got paid very high levels of interest. If you do that today you don't get paid at all.
Sweeney adds: "People are looking for alternatives. You might consider high yield bonds or emerging market debt. Equity income is one area you might consider for income investing and property is another. By virtue of this, you are moving into higher-risk asset classes.
"An attractive way to look at income is through alternative investments. You can access lots of niche areas for income investing. We do a lot of this in our portfolios because we believe there are attractive levels of yield on offer."
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