Allocating to multi-asset income

Why and how dynamic income strategies can add value in the investment mix.

Key takeaways

Investing in multiple income-producing asset classes may help investors approach equity-like returns over time while producing a level of base income and a potential buffer against equity declines.
Multi-asset income investment strategies that employ dynamic asset allocation offer the potential for managers to adjust asset class weightings based on market conditions, resulting in potential alpha generation above a 50-50 mix of stocks and bonds.
Advisors might consider multi-asset income either a “balanced plus” asset class or tactical income that can help investors reach specific income goals.
Multi-asset income (MAI) strategies may help investors decrease their exposure to cyclical sectors and specific growth stocks compared with a traditional balanced fund linked to the S&P 500 index.