Income generation is prime concern: Aviva

The results showed that 83 per cent of real estate managers believe clients are more focused on income today than they were previously, followed by 71 per cent of equity and 67 per cent of fixed income managers.

Hedge fund managers were an exception to the rule, with only 9 per cent citing an increased focus on income by their clients.

Nick Mansley, global director of multi manager for Aviva Investors, said the findings were derived from a survey that asked fund managers based across the globe for their views on the macro-economic environment, return expectations and client behaviour in 2012.

He added: “In an environment of low cash yields and continued uncertainty around economic growth it is not surprising that investors are more focused on income.

“We expect this to be a long-lasting theme across several asset classes. Unsurprisingly, hedge fund clients are not particularly worried about income, but more real estate managers are seeing this shift than we expected.”

He added that because equity investors are seeing more of an increased focus on income, and are more concerned about short-term inflation than fixed income managers - who have a longer-term investment view - seem to be, this “turns the world of investment on its head”, and may reflect the broader uncertainty in markets at this point in time.

Alistair Cunningham, financial planning director for Surrey-based Wingate Financial Planning, said: “For almost all our clients we are only interested in total returns, which is income and capital growth.

“In our view, focusing on high interest or dividend paying investments may jeopardise other investment opportunities.

“The only exception to this rule-of-thumb would be if there were unusual tax considerations.”