Income: the hard worker in your portfolio deserves more credit

In a less certain market environment, we think the case for income only gets stronger. Income isn’t just for income-seeking investors; it’s also an important component of total returns for those focused on building wealth over time. Our research ¹ suggests that even for a standard 60% equity/40% bond portfolio, income can potentially contribute more than half of the returns over a five-year investment horizon. If investors choose asset classes with a higher income profile, such as credit or high-dividend-income equity, that proportion increases, reaching as much as 80% in some cases.

¹Sources: Wellington Management. Average of rolling periods from January 1985 to June 2023. For full research paper, see Income investing in multi-asset portfolios: tipping the balance in your favour , September 2023.

Disclaimers & Disclosures

Tracing our history to 1928, Wellington Management is one of the largest independent investment management firms in the world. We serve as a trusted adviser for institutions in more than 60 countries.

Income: the hard worker in your portfolio deserves more credit

1 Sources: Wellington Management. Average of rolling periods from January 1985 to June 2023. For full research paper, see Income investing in multi-asset portfolios: tipping the balance in your favour , September 2023.

¹Sources: Wellington Management. Average of rolling periods from January 1985 to June 2023. For full research paper, see Income investing in multi-asset portfolios: tipping the balance in your favour , September 2023.