The key to income investing

The key to income investing. Alvin Chan, Portfolio Manager at Altair Asset Management, is responsible for managing and constructing an income portfolio. He says that one of the challenges facing income investors is generating income whilst also preserving capital. I am very cognisant of investors investing in income funds that offer a great yield this year but the capital not keeping pace with the market. In order to address this Chan splits his portfolio into two components providing a balance of core and prospective yield. Chan says, the majority of his portfolio is constructed from stocks offering good yield and franking right now. However, he also allocates around 30% to companies offering growth and prospective yield. He says this balance allows his portfolio to provide attractive yield today while keeping pace with the market from a capital growth perspective. This video provides a more detailed explanation and talks through Alvin's investment case for CSL which fits his growth + yield profile.