Releasing the pressure? Ultilising unconstrained fixed income strategies within a retiree's portfolio

The reduction in yields is presenting a significant impediment to retirees’ quest to maintain their income levels. In response, many investors think that to increase their yield they have no choice but to take a step into the unknown, investing in examples of what were previously seen as more exotic options such as unconstrained bond strategies and long short credit. Many of these strategies have not been tested through different market cycles, making it crucial investors understand what is driving their returns and their suitability for current market conditions. To escape this, Reconsider your traditional asset allocation approach and look to use a more objectives based approach that align with what you are looking to achieve. This allows you to better set your expectations around risk and return, while also giving the fund manager more flexibility in the methods used to achieve the targets in the areas of income generation and capital stability. MORE: (VIEW LINK)