Why investors need a new strategy to generate income

INCOME

As the global economy recovers and interest rates look set to rise again, investors will need a different strategy to generate global income, says Jacob de Tusch-Lec, manager of the Artemis Global Income fund.

There is a change in the air. Five years after the financial crisis, the world is slowly getting back to normal. It might feel like we are still in a post-crisis environment, but things are improving – albeit somewhat unevenly. Production indicators are finally starting to turn up. Banks are adequately capitalised, and have lowered their risk profiles. My base-case scenario is we are heading towards something which looks like a normal recovery. As a result, interest rates will eventually have to become more normal too. There is, of course, a degree of uncertainty as to the precise pat...