Rein in income expectations in multi-asset funds
Managing different positions in varied assets challenging for individual investors.
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INVESTORS have gravitated strongly towards multi-asset funds in the last couple of years, thanks to their ability to generate and distribute income.
But Aviva Investors head of multi-assets Peter Fitzgerald says investors have a "completely unrealistic'' view of the level of income their funds can pay.
"One of the key demands in Asia is for income... We say anything more than cash plus 4 per cent is unrealistic, based on the dividend yield available today. I can give you 10 per cent a year for 10 years, and at the end of 10 years you have no capital left. Is it income that you have distributed or are you giving back a percentage of the capital every year?''
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