Addressing the income challenge

Adopt a systematic approach to generate income across different scenarios

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The landscape for income investing has shifted irrevocably in the last couple of years. After over a decade of yield scarcity, an environment of higher inflation and higher interest rates has led to more attractive income opportunities.

But income requirements have risen alongside inflation, so what are the options for investors?

Step away from short-term wins, as they may come at a cost

While it is now possible to capture multiple sources of income – even cash deposits are currently offering compelling interest rates – it is important to move beyond temporary, short-sighted options.

Indeed, keeping money in a bank account, rather than investing it, could represent an opportunity cost: both in terms of missed out returns and lost purchasing power over time.

Investors should focus on long-term solutions, able to achieve their investment objective over different central banks’ scenarios.

Step away from short-term wins, as they may come at a cost

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Add arrows to your quiver – there is more to fixed income

A quiver with arrows hanging from a wall.

Add arrows to your quiver – there is more to fixed income

Bonds have traditionally offered a good foundation for income portfolios, as they can provide a stable and predictable source of income.

While it’s important not to overlook the breadth and depth of debt markets, which include an extensive number of segments (corporate or emerging market debt to name a few), there are other assets classes and strategies investors should consider to boost their search for income.

Your allies in the
search for income

Discover
the income solutions range

Fund icon for Amundi Funds Global Equity Sustainable Income

Amundi Funds Global Equity Income ESG

Seeking income today for a sustainable tomorrow
Fund icon for Amundi Funds Real Assets Target Income

Amundi Funds Real Assets Target Income

A yield-seeking response to higher inflation
Fund icon for Amundi Funds Global Multi Asset Target Income

Amundi Funds Global Multi-Asset Target Income

Targeting sustainable income at low volatility
Fund icon for Amundi Funds Pioneer Income Opportunities

Amundi Funds Income Opportunities

From benchmark investing to an outcome oriented solution

*Diversification does not guarantee a profit or protect against a loss.

Past market trends are not reliable indicators of future ones.

Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 29 May 2024. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results. 

Date of first use: 29 May 2024
Doc ID: 3557661

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