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. Australian investors are
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
The BetaShares Australian Dividend Harvester Fund (managed fund) (HVST) has proven popular with investors since its inception in October 2014, particularly in light of elevated equity market volatility and the search for yield in today’s low interest rate environment. This note demonstrates that since inception HVST has been able to generate high income returns that have
The traditional argument for index investing – such as through exchange traded funds – is based on the view that most active managers fail to beat their respective investment benchmarks more often than not. But while this may be true to some extent, it’s clear that some active managers maintain good track records over time and
With cash deposit rates at historical lows and the prospect of continued volatility in the share market, many investors are looking for smarter ways to enhance their income whilst reducing their exposure to share market risk. One way of seeking enhanced income is through what’s known as a “buy/write” strategy, which uses “call options”.