This episode discusses how a diversified monthly income portfolio is constructed to deliver a consistent income stream alongside capital growth. In our interview with Vincent McEntegart, co-manager of the Aegon Diversified Monthly Income fund, we find out why a 5% income target was chosen, how income is sourced across equities, bonds, alternatives and currencies and how the portfolio has adapted as interest rates have risen. We also discuss the role of duration management, portfolio diversification, currency hedging and disciplined rebalancing in protecting investors through market volatility, particularly for those in or approaching decumulation.

What’s covered in this episode:

Why target a 5% monthly income
Income vs capital growth trade-offs
Building a diversified income portfolio
Equities, bonds, alternatives and currency income
How higher interest rates changed the strategy
Managing duration and interest rate risk
Using currency to enhance yield
Protecting capital during market drawdowns
Income investing in the decumulation phase

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.

386. 5% income without sacrificing growth