Delivering Sustainable Income of 6% p.a. with Equities and Options

In an environment where fixed-income yields are persistent, low investors continue their search for income. Many investors have turned to equities to provide them with the higher levels of income they desire. Yet unlike the coupons received from fixed-income assets, the dividends received from equities are by no means ‘fixed’. While dividends certainly provide a source of income, this income is variable in nature and can be particularly vulnerable during significant economic shocks. The COVID-19 pandemic is a primary example where companies were forced to cut or in some cases suspend their dividends altogether.

Join us as we share insights into how we combat this and other challenges in income investing. Our innovative approach combines dividends from global equities with premiums from selling options to deliver a smooth and sustainable level of income at 6% p.a.. Targeting returns in line with the MSCI ACIW, we carefully balance income and total return by drawing on our extensive experience managing income since 1987, high-yielding equities since 2013, and enhanced systematic options since 1972.

Speaker's Profile

Eddie Cheng, Head of International Portfolio Management, Multi-Asset Solutions, Systematic Edge

Eddie is the Head of International Portfolio Management within the Multi-Asset Solutions team. Prior to joining the firm, Eddie was a senior Portfolio Manager at Schroders leading the Multi-Asset team’s risk-based investment solutions and development of Alternative Risk Premia strategies. He was also responsible for driving the team’s thought leadership research as head of their editorial board, covering topics across hedge fund investments, portfolio construction, and risk management. Prior to 2012, Eddie was a Portfolio Manager at Schroders NewFinance Capital, responsible for hedge fund investments and portfolio management focusing on liquid alternative strategies. He started his career in 2002 at the Institute of Information Science, Academia Sinica in Taipei, as a Research Analyst focusing on advanced signal processing technologies.

Sophie Careford, Product Specialist, Systematic Edge

Sophie is the Product Specialist for Systematic Edge. Prior to joining the team in August 2018, she served as Client & Consultant Relations Associate for the International Distribution team, in this capacity she supported the EMEA Consultant Relations team as well as the Head of International Distribution. Sophie holds a national Diploma in Business and Marketing from De Montfort University, and has completed the CFA Investment Foundations Certificate and Level 2 of the CFA Program.