When to consider a managed income fund - September 2021
Investors may need to keep a portion of their savings in cash for different reasons. Business owners with lumpy cash flow may need to park some capital in cash to pay monthly bills such as salaries. Or, individuals who have just retired may wish to have a bucket of retirement savings that is not exposed to near-term market risk. Whatever your reason for needing access to cash in the short term, if your time horizon is less than three years, consider investing that money in a managed income fund.
BETTER THAN CASH
Coronation offers two managed income funds for investors wanting to achieve a better return than domestic or US dollar cash. The Coronation Strategic Income Fund and the dollar-denominated Coronation Global Strategic USD Income Fund are both actively managed across the range of yielding asset classes.
A 20-YEAR TRACK RECORD OF OUTPERFORMING CASH
Coronation Strategic Income has a 20-year track record in consistently outperforming cash over rolling three-year periods (the maximum recommended investment period) as is clear from Figure 1 below. This demonstrates the value of considered risk-taking within the fixed interest universe, coupled with active diversification into alternative sources of return.