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Many investors take a one-dimensional approach to income investing, based broadly around a single asset class. However, a portfolio based on this philosophy is unlikely to deliver a persistent stream of stable income, due to its inability to capture attractive yield opportuni­ties as they arise elsewhere. This is particularly true in times of heightened market volatility, when it becomes harder to generate reliable income streams, potentially leaving single-asset investors with insufficient income to meet their needs.

Multi-asset investing is powerful because it allows well-managed portfolios to access a broad range of asset classes and securities, including the full breadth of the corporate capital structure. Tailoring exposure to a variety of investments in a nimble, innovative and flexible way can allow a portfolio to generate income in all market conditions and, crucially, maintain the potential for further capital appreciation.

WHAT ARE THE RISKS?

All investments involve risks, including possible loss of principal. The value of investments can go down as well as up, and investors may not get back the full amount invested.

The positioning of a specific portfolio may differ from the information presented herein due to various factors, including, but not limited to, allocations from the core portfolio and specific investment objectives, guidelines, strategy and restrictions of a portfolio. There is no assurance any forecast, projection or estimate will be realized.

Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.

Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in an investment portfolio adjust to a rise in interest rates, the value of the portfolio may decline.

IMPORTANT LEGAL INFORMATION

This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. All investments involve risks, including possible loss of principal. There is no guarantee that a strategy will meet its objective. Performance may also be affected by currency fluctuations. Reduced liquidity may have a negative impact on the price of the assets. Currency fluctuations may affect the value of overseas investments. Where a strategy invests in emerging markets, the risks can be greater than in developed markets. Where a strategy invests in derivative instruments, this entails specific risks that may increase the risk profile of the strategy. Where a strategy invests in a specific sector or geographical area, the returns may be more volatile than a more diversified strategy.

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