View more on these topics

North’s Husselbee puts income under the spotlight

North Investment Partners co-founder John Husselbee is reviewing the income exposure in his multi-asset and discretionary model portfolios to position them for a “lower for longer” interest rate environment.

Husselbee, who co-founded the firm in 2005 and oversaw its acquisition last year by Liontrust Asset Management, started to examine his income positions in response to the Bank of England’s pledge that interest rates are unlikely to rise in the near future.

He says: “We think rates will stay lower for longer after forward guidance was brought in. We do not really see how bond and cash yields are going to rise that qui-ckly so are looking for a bit more income from equities. We are looking at our portfolios to see how we can win a bit more income without taking on additional risk.”

Although no changes have yet been made to portfolio allocation, Husselbee is considering putting money into enhanced income funds to access a higher yield. He is currently examining managers to see how they are positioned.

Hargreaves Lansdown senior investment manager Adrian Lowcock agrees now seems to be an appropriate time for investors to take another look at their income exposure.

He says: “There is not a great return on fixed income at the moment, even though it is better than it was. But equity income looks to be quite an attractive option when you have inflation below 2 per cent, companies’ earnings growth coming through and the economy recovering.”

Liontrust acquired North Investment Partners in October as part of a move into the multi-asset market.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm