Wirral Life October 2017 - Page 24

A DV E RT I S I N G F E AT U R E Is your income suffering from record-low interest rates? Wealth management specialist Wilf Burns explores your options. I ncome is important. It’s an obvious statement. The difficulty is that, in an uncertain world, investment income is hard to find right now. Investors looking for income have faced an increasing challenge ever since the financial crisis broke in 2008. Prudence and vigilance became the order of the day as financial institutions across the globe took extreme measures to protect themselves from global meltdown. Central Governments across the world also reacted strongly, forcing interest rates to record lows. Six years on and interest rates in the UK remain almost non-existent. The result is real losses for savers in bank and building society deposits which fail to match inflation. With dividend payouts on the turn, the outlook for equity income funds could also be on the up. Equity income funds have a strong track record for delivering attractive, sustainable income and steady returns over the long term. But it is worth remembering that not all equity income funds are the same. Some are better for income, while others provide better prospects for total return investors through the reinvestment of income. St. James’s Place offers a range of equity income funds managed by investment managers with complementary styles. Investors wanting to secure a better level of income have realised that they must look beyond traditional cash deposits. Corporate bond funds which are, by their nature income producers, remain popular particularly with cautious investors. At St. James’s Place we firmly subscribe to the view that a diversified fixed interest strategy with exposure to investment grade, sub- investment grade and senior secured debt will help position your portfolio to benefit from growth across the credit spectrum. History shows that investing in equities, or shares, has provided investors with a better chance of outpacing inflation over the long term versus other asset classes, particularly if the shares are able to increase the dividend payments year after year. Positively, there are indications that the recent trend of increasing dividend payments could be sustainable. Commercial property felt the full effects of the credit crunch and the fall in property values left many investors nursing significant losses. But again, history suggests that commercial property has a place in a portfolio for income investors. Its long-term track record is strong and, importantly, it offers returns that are lowly correlated to other WILF BURNS Associate Partner Tel: 0151 958 0496 Email: wilf.burns@sjpp.co.uk Web: www.wilfburns.co.uk Wilf based locally locally and and is is Wilf Burns Burns is is based inviting Wirral Wirral Life Life readers readers to discuss inviting their concerns and discover the their opportunities that are available. opportunities Call 01234 0151 958 0496 for for more more Call 567890 information or or your your complimentary complimentary information guide to wealth management. guide to wealth management. asset classes. Investors should however note that investing in real asset classes (equities, corporate bonds and commercial property) does not provide the security of capital which is characteristic of a deposit account with a bank or building society. The value of capital, and income from it, can fall as well as rise and you may not get back the original amount invested. Those investing for income need to remember that no one asset class is the panacea. With uncertainty around interest rates, a well- diversified, well-managed portfolio which blends a range of asset classes remains the most suitable strategy for investors to satisfy their longer-term income needs. At St. James’s Place we believe that our ability to tailor solutions to an individual’s needs and attitude to risk means your income investments are in good hands. The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested. The Partner represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website www.sjp.co.uk/products. The title ‘Partner’ is the marketing term used to describe St. James’s Place representatives. H2SJP26651 08/17