One year ago, an investor with A$1 million allocated to a cash fund would receive an income of A$10,000 per year. Today, that A$1 million allocation would only return A$1,000 per year.
Investors have had to navigate many twists and turns during the COVID-19 crisis; and with the immediate impacts and after effects still playing out, the stressors of liquidity needs and deteriorating income profiles will not be dissipating any time soon. This backdrop has driven today’s institutional investors to bolster their liquidity levels from a tactical and strategic perspective while also seeking higher-yielding strategies given the precipitous fall in interest rates.
Strengthening income will be a crucial element for strategies aiming to deliver strong, risk-adjusted returns and account for a rise in volatility of income and capital.
Read our latest investment insights paper from QICs Liquid Markets Group, Income is the new defence to learn more.
QIC is launching a new private debt capability to offer institutional investors a structural solution for today’s low-yield environment.
