A flexible investment approach across income-producing asset classes with differing characteristics can help provide higher yields and meaningful diversification.
- Widen the opportunity set. Striking a prudent balance between income and risk requires widening the opportunity set by combining traditional and non-traditional sources of income.
- Diversify income sources. A mix of preferred stocks, bank loans, REITs, and MLPs in addition to traditional stocks and bonds can provide an attractive income stream.
- Balance yield and risk. Carefully balancing the trade-offs between yield and risk by casting a wider net to find the best income opportunities.