1 World Trade Organisation (WTO), United Nations conference on trade and development (UNCTAD), September 2020. World merchandise trade volume index was rebased to 100 in 2005.
2 Organisation for Economic Co-operation and Development (OECD), 14 September 2020. Bloomberg, 14 October 2020. The information in this material may contain projections or other forward-looking statements regarding future events, targets, management discipline or other expectations, and is only as current as of the date indicated. There is no assurance that such events will occur, and may be signifcantly different than that shown here. The information in this material including statements concerning fnancial market trends, are based on current market conditions, which will fuctuate and may be superseded by subsequent market events or for other reasons. For illustration purposes only.
3 Bloomberg, as of 30 September 2020. Correlation is calculated based on monthly performance from 30 September 2015 to 30 September 2020. Asian equities are represented by MSCI AC Asia ex Japan gross total return USD index. Past performance is not indicative of future performance. Investors cannot invest directly in an index.
4 eMarketer, May 2020.
5 Gartner, July 2020.
6 Citi research, 4 October 2020.
Why understanding risk can help you allocate your assets with confidence
Choosing the right sources of income from the wide variety of options available in the market may seem daunting to many investors. To construct an optimal investment portfolio with income exposure, Bruno Lee, Regional Head of Retail Wealth Distribution, Wealth & Asset Management, Asia at Manulife Investment Management believes that investors should first understand the risks associated with each income source then consider their own risk tolerance level and wealth-management objectives.
Understand different income sources, broaden your income exposure
There are many income sources to consider, each with different characteristics such as income volatility and risk levels. By gaining an in-depth knowledge of these, investors should be able to find suitable options to broaden their investment income.
Avoid depleting your cash reserves with income investing
The sudden emergence of COVID-19 has left a major dent in the global economy. To comply with regulatory requirements, some international banks have cut dividends without warning, while others have even suspended payouts for the time being1. As a result, many investors who rely on dividends have been left in the lurch. How important is income to investors?
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