The challenges of providing a steady income stream

BONDS

Christine Johnson, manager of the Old Mutual Corporate Bond and Monthly Income funds, gives some examples of names which are helping meet client demands in a difficult fixed income environment.

If you have spent your best years in working life, one of the things you will have got used to – unlike the morning commute and the colleague you cannot stand – is the idea of getting paid every month. So it is always a little odd that in life after work one is supposed to switch to being paid quarterly or even semi-annually. One of our key objectives as income investors is to provide consistency as well as frequency in our distributions. In our view, clients should reasonably expect to receive a similar amount on a particular day of the month. How is this being achieved? We like b...