In this scenario, the reduction in income from current levels is estimated to be 52 per cent and the estimated yield on the fund would currently stand at approximately 3.7 per cent.
In our second, more optimistic scenario, we would anticipate a number of companies returning to paying dividends later in the year but at a reduced level compared to 2019.
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We would then anticipate further dividend growth into 2021. On this basis, the reduction in income from current levels is estimated to be 36 per cent and the estimated yield on the fund would be about 4.9 per cent.
Philip Matthews is co-manager of the Wise Multi-Asset Income Fund at Wise Funds
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