Fishing for yield? Cast your net wide
Investors could be forgiven for missing the RBA’s latest cut that saw the local cash rate plumb new depths of 0.1%, given competing headlines from the Melbourne Cup and US election – races that stopped the nation and transfixed the world, respectively
Australia’s low cash rate has plenty of company, with rates also languishing well below 1% in the US, UK, and Japan and negative in several countries including France and Germany. In this global environment, investors seeking sustainable yield need to cast a wider net – especially in fixed income portfolio allocation
Government bonds remain important diversifiers. But they may not provide the same yield opportunities as multi-sector strategies, such as the Neuberger Berman Strategic Income Fund. This generates monthly income by pursuing global value opportunities in investment-grade bonds.