Investments  

Quilter’s income manager on navigating the dividend drought

They provide monthly distributions, so smooth a clients’ income stream over the financial year and attempt to give more stability and certainty to the amount an adviser and client receives on a monthly basis.

As the portfolios are risk-targeted, the funds must stay within the volatility perimeters meaning the level of risk involved remains steady too.

Ms Bradshaw said: “What with the trade war, Brexit and the coronavirus, it’s been a true test for these portfolios.

“But it has arguably allowed them to prove their adequacy in a challenging market environment. And with rates continuing to be cut, government bond yields declining and companies cutting dividends, they are more relevant now than ever.”

imogen.tew@ft.com

What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.