Close

Income Is a Challenge for Investors Worldwide

Four in 10 investors worldwide are generating less income than they hope for, according to Legg Mason. The firm surveyed more than 3,000 affluent investors in North America, Europe, Asia and Australia about their current attitudes toward income investments.

Nearly seven out of 10 respondents described investing for income as being extremely important. Yet, across the globe investors said gaps exist between the rates of return they desire and the rates of return they are actually receiving. The largest gap between desire and reality was evident in Taiwan (4.0% gap), with the U.S. ranking sixth (2.6% gap). Low yields and uncertainty over tax law changes were listed as the biggest challenges for U.S. investors. Notably, concerns about inflation were the highest in China, Taiwan and Australia.

In terms of what they invest in, the U.S. led all countries in terms of holding equities (a 39% allocation). U.S. investors also had the largest percentage of their equity allocations held in mutual funds (49% allocation). In terms of fixed income, U.S. investors ranked third worldwide with a 19% allocation, behind Italy and Canada. U.S. investors relied on bond mutual funds more than investors in other countries, however, with a 45% allocation of fixed income to them. U.S. investors were also more likely to invest domestically than any other country, with just 11% investing internationally for income.

...To continue reading this article you must be registered with AAII.

Gain exclusive access to this article and all of the member benefits and investment education AAII offers.
JOIN TODAY for just $29.
Register for FREE
to read this article and receive access to future AAII.com articles.

Log in
Already registered with AAII? Login to read the rest of this article.
  


Discussion

Richard Morrissey from Massachusetts posted 10 months ago:

Real estate investment trust &

Master limited partnership is the way to go.


You need to log in as a registered AAII user before commenting.
Create an account

Log In