Indeed, many investors are now drawing yield plus some capital to fund income needs; many advisers are recommending growth portfolios when income is being drawn from a pension or an Isa wrapper.
Meanwhile, the prospects for direct commercial property are good. This is an asset class that can deliver lower risk yield and liquidity ratios within funds at sensible levels.
Finally, certain structured products and numerous ‘alternatives’ are available, such as absolute return and market-neutral funds that utilise derivatives to hedge off capital risk and deliver yield.
So investing for yield is still possible, but investors should perhaps review their approach to how they achieve it.
Mark Woods is investment strategy officer at Fairstone Private Wealth
