Good Yield Hunting: Multi Asset Income
23 Sep 2021

Good Yield Hunting: Multi Asset Income


Global markets had been in a rollercoaster year in 2020 due to key events like Covid-19, coordinated central bank easing efforts as well as the US elections. Despite these, most risk assets ended the year with very positive returns, proving again that time in the market trumps timing the market.

Due to massive global stimulus, interest rates are at record lows and markets are experiencing reflationary pressures. In this environment, income investors can turn towards multi-asset funds that allocate to a diversified mix of assets to generate regular income. Additionally, these funds are managed by professionals that not only have the experience but also the temperament to invest throughout market cycles.

So, what would be one of our top conviction fund in the global multi-asset space?

First Eagle Amundi Income Builder

What are the Key Characteristics of this fund?

  • A Value-oriented Balanced fund with a neutral risk budget of 50% Bonds / 50% Equities that focuses on minimising loss of capital.
  • Well-diversified and spread out across four core asset classes: Equities, Credit, Cash & Gold, with a targeted pay-out of ~5.0% p.a.
  • Managed by a large, experienced investment team focused on bottom-up research.

Why this Fund? 3 Reasons:

  1. Core Balanced Solution: Split between Global Value & Income Equities, Fixed Income, and Gold, the fund provides one-stop solution to the DBS CIO’s recent asset allocation views.
  2. Margin of Safety: Translated as ‘Making more by losing less’, the fund’s philosophy is centred on hedging away crisis correlation risks and minimising risks of permanent capital loss.
  3. Sustainable Income: The fund pays out a sustainable quarterly distribution of 5.0% p.a., supported by its exposure to income equities & credit.

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*All investments come with risks and you can lose money on your investment. Invest only if you understand and can monitor your investment. Diversify your investments and avoid investing a large portion of your money in a single product issuer.