Income or growth. Why not aim for both?
Diversify your investment during inflation with Target Capital Assets income and growth strategies for individual investors.
Do you and your family and friends want income or growth?
These days you may need both to stay ahead. Many of our income funds are managed with a total return mindset, which means increasing capital is as important as growing the income stream. So, whether inflation is rising or falling, you know your clients could continue to benefit.
Income: an important part of growth
Against a challenging backdrop, long-term individual investors are taking a fresh look at income and how to use it.
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As odd as it might sound, forward-thinking individual investors may not necessarily choose an income strategy for income’s sake. Instead, they may focus on total return: potentially growing both income and capital over the long term.
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The investment environment has changed. Although income has always made a meaningful contribution to total returns, its contribution has become particularly relevant in an uncertain environment of above-trend inflation and higher interest rates.
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In this new environment, it’s not about looking for the companies that pay the highest dividends ( weekly, monthly quarterly or/and annually ); it’s about finding the companies that can deliver a consistent sustainable and growing income that will ultimately help fuel long-term total returns.
Income but not as we know it
To many investors, income investment might suggest mature, declining industries and poor-quality companies: a strategy in which the potential for tomorrow’s capital growth is sacrificed for today’s yield. However, a long-term income strategy focuses on companies with the ability – or the potential – to distribute a sustainable income to their shareholders. Moreover, it offers a large and expanding investment universe of high-quality investment opportunities.
A proven, consistent approach with the potential to deliver
TCA has an unparalleled[1] heritage in income investing, with a strong focus on total return and consistent long term investment for our client. We have managed successful income mandates for well over a 5 years. In fact, 2023 marks the 5th anniversary of the Target Income Growth Investment Trust.
A consistent, disciplined approach that supports clients’ outcomes.
TCA’s income strategies are run by established managers with proven track records. They have a consistent, disciplined approach to company analysis, stock selection, and portfolio construction for individual investors. Our investment teams are backed by robust infrastructure that supports them in delivering the outcomes that our clients expect.
A world of choice
At a time when investors must take an increasingly global view, Target Capital Assets offers a world of choice. We manage regional income mandates – including European, UK, and emerging market income strategies – and global income mandates, including global dividend and global infrastructure strategies.
Although the managers of TCA’s income strategies have their own investment approach, they all believe in the power of income to deliver strong total returns. They focus on identifying attractively valued, cash-generative investments with pricing power that will help us to increase our payouts over time.
Income or growth? Discover the potential of both
In challenging markets, investors can benefit from taking a long-term, total return approach that focuses on growing both income and capital. Designed to be used as core components within you and your family and friend’s portfolios, TCA’s income strategies are balanced to deliver through the investment cycle and to achieve the long-term outcomes you expect.
Perhaps it’s time to think again about income, its role within a portfolio, and – most importantly – its long-term contribution to the bottom line.