Alternative Options for Income Investors

Many investors have flocked to niche areas, from aircraft leasing to disaster insurance, in the search for reliable income, but are they exposing themselves to too much risk?

James Gard 3 March, 2020 | 1:09PM

Flooding in Tesco

Investors are increasingly seeking out more exotic sources of income as traditional sources of dividends and interest disappoint. Bond yields in many countries are negative, companies are slashing dividends and cash savings rates are lagging inflation. It's no wonder, then, that many investors are looking for new homes for their cash.

Most ordinary investors would be nervous about putting their money directly into wind farms, social housing, natural disasters or aircraft leasing, but funds have sprouted up over the years to cater for growing demand for such assets. Many of them offer an undoubtedly attractive income stream, but are investors taking on too much risk in these esoteric areas?

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About Author

James Gard  is content editor for Morningstar.co.uk

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