The Diversified Income strategy seeks attractive current income, while providing broad diversification and potential for growth of capital.
Key potential benefits of the Diversified Income strategy include:
- High Current Income – from both bonds and high-yield equity assets
- Diversification – from combining a wide range of asset classes, many of which have exhibited relatively low correlation with one another
- Growth – from the equity portion of the portfolio
- Low Cost Implementation – from careful investment selection and opportunistic portfolio rebalancing
The following chart provides a sample portfolio allocation for illustrative purposes.Note how the Diversified Income portfolio includes higher yielding equity assets, such as high-dividend-yield stocks, convertible bonds, real estate investment trusts (REITs), and energy infrastructure Master Limited Partnerships (MLPs). Together, these provide the potential for more long-term growth than would be expected of a conventional portfolio of bonds or bank certificates of deposit.
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