How Income Investors Can Tackle Higher Inflation

UBS advises income investors to move beyond traditional safe havens and diversify into a mix of fixed income, dividend-paying equities (specifically in Switzerland and SE Asia), and alternative assets like infrastructure to tackle sticky inflation.

Key Takeaways

• 1.Income investors should diversify across bonds, equity income strategies, and alternatives to mitigate purchasing power erosion from sticky inflation.
• 2.Locking in yields on USD, EUR, and GBP bond curves up to the 10-year point is recommended for core holdings.
• 3.Preferred equity income regions include Switzerland, for high-quality 3% yields, and Southeast Asia.

Table of Contents

• Key message
• 01 Diversified fixed income can enhance yields and spread risks.
• 02 Investors can also consider equity income approaches.
• 03 Longer-term investors may consider exposure to alternatives.
• New this week
• One liner
• Did you know?
• Investment view
• Non-Traditional Assets
• Risk information
• Generic investment research – Risk information

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