Richard Montgomery, Author at BetaShares

Investing for Income (part 2)

Reading time: 5 minutes
Earlier this month, in Investing for income (Part 1), we looked at the challenges facing investors seeking income in a low interest rate world, and presented several opportunities in the cash and fixed income asset class.
In Part 2, we explore the opportunities to earn income from equities.

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Investing for income

Investing for Income

Reading time: 5 minutes
According to a Bloomberg report from June 2019, more than 20% (or US$11 trillion worth) of the investment-grade bonds on issue worldwide were trading at negative yields. In other words, investors buying these bonds know that if they hold them to maturity, they will receive cashflows over the life of the bond that are less than what they are paying for the bond today!

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CRED: fixed income

“I hold fixed income, I’m diversified, right?” Not so fast…

Reading time: 5 minutes
Diversification may well be a primary reason for including fixed income in your portfolio. The idea is that your fixed income allocation acts as a defence when equities are not performing well. As a result, the overall volatility (risk) of your portfolio should be lower than if you were 100% invested in equities.

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profit from your principles -responsible investment

Profit from your principles

Reading time: 5 minutes
Responsible investing is on the rise. According to the Responsible Investment Benchmark Report 2018 Australia, more than half of all professionally managed assets in Australia fall under a responsible investment umbrella.
In years gone by, conventional wisdom was that acting in accordance with ethical principles involved a trade-off against portfolio returns.

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