With income levels on traditional assets such as cash and government bonds having fallen in recent years, pension plans have found it harder to meet their future cash-flow obligations, as well as continuing to achieve sustainable growth. Additionally, as contributions decline, plans are often struggling to manage cash flow effectively in order to meet near-term commitments.
By investing in suitable income products, plans may be able to make their investments work harder to deliver on their dual objective of generating income to meet cash requirements and growing capital over time.
Focus on companies with a disciplined approach to capital management aims to provide a consistent income stream, even in volatile markets
Using time and consistency to harness the full potential of compounding
Applies to income from equity dividends as well as from bonds and alternative investments within a multi-asset portfolio