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.”

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