# Advisers Increasingly Turning To Multi-Asset Funds For Income Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-03-15 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Advisers Shifting to Multi-Asset Income Funds for Reliable Meta Description: Discover why 39% of advisers are moving income clients to multi-asset income funds, rejecting high yield bonds, property income & emerging market debt. Tags: featured Tag URLs: featured (https://financedigest.com/tag/featured) URL: https://financedigest.com/advisers-increasingly-turning-to-multi-asset-funds-for-incomehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/businessman-shows-gear-to-s-1736844090684-compressed.jpg) - 39% of advisers have moved income clients from single asset to multi asset income funds in order to achieve more reliable long term income - The most common income strategies rejected by advisers in favour of multi asset income were high yield bonds, property income and emerging market debt - Advisers are increasingly drawn to multi-asset income products because of their ability to deliver a smoother journey through diversification - Heartwood’s income range provides [investors with pragmatic yields](https://www.financedigest.com/shares-choppy-u-s-yields-fall-as-investors-digest-fed-minutes.html "Shares choppy, U.S. yields fall as investors digest Fed minutes") and a long term focus on capital appreciation Two in five (39%) advisers have moved income clients from single asset to multi asset income funds in [order to achieve more reliable long term income over the last 12 months](https://www.financedigest.com/italys-leonardo-raises-fy-orders-guidance-after-strong-nine-months.html "Italy’s Leonardo raises FY orders guidance after strong nine months"), according to research by Heartwood Investment Management (‘Heartwood’). The firm has seen inflows into their income funds increase by over 24% in 2016 from advisers looking specifically for a global multi asset income solution\*. The research revealed that the most common income strategies rejected by advisers in favour of multi asset income were high yield bonds, with two in three (65%) citing this option. Half (51%) said they rejected property income in favour of multi asset income while more than two fifths (43%) highlighted [emerging market](https://www.financedigest.com/allergy-immunotherapy-market-emerging-players-may-yields-new-opportunities-2017-2025.html "Allergy Immunotherapy Market: Emerging Players May Yields New Opportunities 2017-2025") debt. One in four (38%) have moved assets out of UK equity income and more than a third (35%) from [global equity](https://www.financedigest.com/global-equity-funds-attract-inflows-for-second-week-in-a-row.html "Global equity funds attract inflows for second week in a row") income. The [research revealed](https://www.financedigest.com/the-pandemics-impact-on-working-mothers-new-research-reveals-that-two-thirds-have-stopped-working-or-now-work-less.html "The Pandemic’s Impact on Working Mothers: New Research Reveals That Two-Thirds Have Stopped Working or Now Work Less") that three fifths (59%) of advisers said their ‘must have’ factor in choosing an income-generating investment is its ability to generate a stable monthly income. This is a modest increase on last year when 55% of advisers selected this as their ‘must have’ 2. More than a quarter (28%) of respondents cited total return, down 7% from last year’s study. The biggest challenge facing [investors seeking long term income is the erosion of capital if markets](https://www.financedigest.com/anti-static-foam-packaging-market-booming-segments-investors-seeking-growth-2030.html "Anti-static Foam Packaging Market Booming Segments; Investors Seeking Growth 2030") fall and a similar amount of income continues to be taken, up from second place last year. The second and third biggest challenges are taking on more risk in order to counter the impact of continued low interest rates and [bond yields](https://www.financedigest.com/german-bond-yields-at-new-highs-after-stronger-than-expected-pmis.html "German bond yields at new highs after stronger-than-expected PMIs"), and the risk of income fluctuating. The research shows that advisers are increasingly drawn to multi-asset income products because of their ability to deliver a smoother journey through diversification, preserve capital when markets fall, and to [manage market](https://www.financedigest.com/food-waste-management-market-expected-to-expand-more-than-three-fold-through-2032.html "Food Waste Management Market Expected to Expand More than Three-Fold through 2032") cycles through tactical asset allocation. Indeed two in three (66%) advisers think the new pension freedoms have increased the [need for reliable](https://www.financedigest.com/why-your-it-needs-a-reliable-sql.html "Why your IT needs a reliable SQL ") income solutions other than pensions. **Noland Carter, [Chief Investment Officer](https://www.financedigest.com/impact-com-names-hubspot-veteran-kim-walsh-as-chief-growth-officer.html "impact.com Names HubSpot Veteran Kim Walsh as Chief Growth Officer") at Heartwood, said:** “At Heartwood we are continually looking for ways to improve our investment process and this includes how we offer income solutions. [Global multi-asset income funds are emerging](https://www.financedigest.com/global-fuel-injector-cleaner-market-emerging-economies-expected-to-influence-growth-until-2031.html "Global Fuel Injector Cleaner Market: Emerging Economies Expected to Influence Growth until 2031") as clear favourites among advisers whose clients seek a reliable, risk-adjusted return generated by a diversified range of assets. Heartwood has a long and established track record of [managing global](https://www.financedigest.com/energy-management-system-market-2021-by-global-key-players-types-applications-countries-industry-size-and-forecast-to-2025.html "Energy Management System Market 2021 by Global Key Players, Types, Applications, Countries, Industry Size and Forecast to 2025") multi-asset-class portfolios with a range of risk-return characteristics. All of our [global multi asset fund portfolios are underpinned by a strict risk](https://www.financedigest.com/imfs-georgieva-sees-darkening-outlook-for-global-economy-rising-recession-risks.html "IMF’s Georgieva sees ‘darkening’ outlook for global economy, rising recession risks") framework, focused on delivering a consistently strong, long term performance and enabling all our clients to benefit equally, from ISA investors to corporates.” **JaisalPastakia, Investment Manager of the Multi Asset Income range at Heartwood, said:** “The [research clearly](https://www.financedigest.com/clear-aligners-market-competitive-research-and-precise-outlook-2020-to-2030.html "Clear Aligners Market Competitive Research and Precise Outlook 2020 to 2030") shows that advisers are not swayed by headline grabbing yields that may impact the stability of income payments in the long term. Heartwood’s income funds are managed with the aim of delivering a stable income [stream](https://www.financedigest.com/passive-income-how-to-build-multiple-streams-of-income.html "Passive Income: How to Build Multiple Streams of Income") that investors can rely on along with a strong focus on capital preservation. The research validates our approach and concurs with the feedback we receive from our clients.” Heartwood’s income range consists of two funds: the CF Heartwood Income Multi Asset Fund and the CF Heartwood Income Plus Multi Asset Fund. The strategies are globally diversified and consist of a wide range of income generating assets including [global equities](https://www.financedigest.com/global-equity-funds-see-large-outflows-on-slowdown-worries.html "Global equity funds see large outflows on slowdown worries"), bonds and property. The current expected yield for the Income strategy is 3.4% and for our Income Plus strategy it is 4.0%3. The strategies aim to distribute stable monthly payments and quarterly top-up payments. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---