Architas' Nevins: Global income has a place in a low interest rate world

Testing environment

Being solely in cash and bonds is just not viable if you are looking for an income.

And it is sensible to diversify beyond just the UK market, so global income certainly has a place in a low interest rate environment.  But with the Federal Reserve planning to raise rates we are looking for assets that would benefit. This includes areas such as asset- and mortgage-backed securities, which currently look attractive. The floating rate cashflows, that are a feature of the underlying mortgages, position them to perform well in an environment where base rates are rising.  In the US market, the outlook is supportive: unemployment is low and falling, home prices have rise...