Deep Dive: Investors need to focus on alternative sources of income-based returns

Ignore the market solution at our peril

Alex Price, CEO of UK Fiera Real Estate, dives into the property sector.

Income-seeking investors, especially defined benefit pension schemes, face the dilemma of how to meet growing liabilities from sustained low returns from traditional lower risk assets. This is not new, with fixed income returns depreciating in recent years, five-year rates on UK gilts are currently 0.3%. What is new is the return of inflation, forecast to rise to 4% per annum in 2021, according to the Bank of England August 2021 monetary report.  In past decades, rising inflation would be offset by rising interest rates, but this seems unlikely with the economic recovery still fragile. M...