Income – Deriving Income from a Multi-Asset Portfolio

The Harvest Income Strategy aims to deliver income to investors from a broad range of asset classes.  The Strategy offers global exposure to equities, bonds and infrastructure combining the ability to trade freely with the availability of a reliable stream of income.

By diversifying across a range of asset classes, the strategy aims to lessen the impact of investment cycles on asset values to the extent that the different assets will not show a high degree of correlation.

income strategy

The strategy involves taking an equal position across the four recommended funds. By doing so, the investors achieve exposure to total assets in the region of €36 billion as well as gaining a combination of equity, bond and infrastructure exposure.

The average distribution yield from these funds is expected to be in excess of 5% initially and should grow over time. In addition, the inbuilt asset diversification should result in lower than average volatility during difficult stock market phases.

How the Funds were selected

Our Investment Department surveyed more than 300 funds across different international markets and, based on the criteria listed below, selected three property related funds.

Criteria for Selection for Income Strategy

  1. Daily Liquidity
  2. Income Distribution of at least 3% per annum
  3. No Material Gearing within Fund
  4. Volatility below average of Comparable Funds
  5. Track Record of three years minimum
  6. Funds supported by broad international expertise
  7. Mainly Euro denominated
  8. Exposure to Equities (Global and European), Bonds (Global) and Alternative (Infrastructure)

Advantages of Harvest Income Strategy

  • Geographic Diversification

Acquiring a broad internationally diversified exposure to income in your portfolio has clear advantages as it spreads risk and provides geographic and sectoral diversification.

  • Asset Class Diversification

In addition to the geographic spread, the Strategy also provides exposure to a broad range of asset types.

  • Liquidity

The funds selected for inclusion in the Strategy are all large liquid funds which can be traded daily allowing the investor to exit at a time of their choosing.

  • Yield

At in excess of 5%, the annual payout from the strategy is clearly well ahead of current deposit rates. In addition we would expect this income to grow somewhat over the coming years.

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This marketing information has been provided for discussion purposes only. It is not advice, it is provided for general information purposes only and does not fully take into account your financial position, investment needs and objectives, attitude to risk, liquidity needs, capital security needs, capacity for loss, etc. It should therefore not be relied upon to make investment decisions. Prior to any formal investments taking place you will be provided with a detailed suitability letter taking into account all the above and outlining why the investment(s) are (not) suitable for you.

Past performance is not an indicator or guarantee of future performance. The value of units in the strategy and income received from it can go down as well as up, and investors may not get back the full amount invested. Other charges and taxes payable by an investor may not be included in the figures.

Warning: If you invest in this fund you may lose some or all of the money you invest. Past Performance is not a reliable guide to future performance. This fund may be affected by changes in currency exchange rates. The value of your investment may go down as well as up. Income may fluctuate in accordance with market conditions & taxation arrangements.

Warning: The income you get from this investment may go down as well as up and the return may increase or decrease as a result of currency fluctuations.