Income Funds

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Income Funds
The challenge facing today’s investor is how to protect the “real value” of cash against a backdrop of high inflation, low deposit rates and a fairly unsettled “macro-economic” environment. This problem is even more critical to clients that have chosen to retire overseas and are looking to supplement their income. ICHOR Partners is uniquely placed as a number of our staff have been helping private clients and institutions to select investments that pay a consistent regular income whilst offering capital protection.
There are a number of Funds available that offer high yielding alternatives to cash and traditional “fixed income” investments. In order to advise you on which one is most appropriate it is important for you to consider:

Investment Duration - Typically the longer the term the greater the fixed income or coupon will be. For example if you wish to invest on an annual basis then the coupon would be in the region of 3-5% pa. However, extend that investment term to 5 years then the coupon rate would typically be around 6-8%.

Income Frequency - Income can be paid either monthly, quarterly or annually and once again frequency will impact on the income received.

Investment Size - Some income Funds can be accessed with as little as US$10,000 which makes them a viable alternative to holding cash on deposit.

Portfolio Management - For clients that have an existing investment portfolio consisting of a cash element it is often advisable to replace this with an income Fund thereby increasing the overall performance of your investment portfolio.