258. How to deliver consistent income in difficult markets

Despite challenging market conditions, the newly Elite Rated BNY Mellon Multi-Asset Income fund has managed to provide a consistent income by employing a diversified investment approach across various asset classes. Manager Paul Flood, joins us to discuss a wide range of topics including how the fund incorporates both macro and micro themes such as big government, decarbonisation and globalisation. Paul also explains the attractiveness of the bond market and the “rebirth” of the 60/40 portfolio (which traditionally consists of 60% equities and 40% bonds). Given concerns about potential inflationary pressures, Paul also explains the shift toward inflation-linked alternatives and renewable energy assets. We finish with important lessons in diversification and the true power of compounding.
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The BNY Mellon Multi-Asset Income fund aims to generate a consistent income and potential capital growth over a long-term period of five years or more. It achieves this objective by investing in a diversified portfolio of equities, bonds, and alternative assets. As part of a broader multi-asset range, the fund leverages the expertise of Newton’s 130 investment professionals, enabling it to invest globally across various geographic and economic sectors.

What’s covered in this episode: 

  • How the fund has managed to deliver consistent income in difficult markets
  • How macro and micro themes help construct the portfolio
  • Why a thematic lens helps diversify the portfolio
  • A look into the fund’s “natural capital” theme and sub themes clean energy and decarbonisation
  • How upgrades can help limit carbon emissions
  • The deflationary effects of globalisation
  • The effects of de-globalisation
  • An overview of the Newton team
  • Why bonds are more attractive today
  • The “rebirth” of the 60/40 investment portfolio
  • Why the team is focusing on inflation-linked alternatives
  • How renewable energy assets can be “bond like” investments
  • Will we see deflation at the end of 2023?
  • The importance of building a portfolio that can withstand any market condition
  • Believing in the power of compounding when investing for the long term
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.

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