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Where to Find Investment Income

Generating attractive levels of income from portfolios continues to be one of the greatest challenges facing investors. The following chart shows the current and ten year average yields for high-profile asset classes. Only two sectors high yield municipal bonds and overseas stocks have yields at or above longer-term averages. We continue to believe these sectors represent opportunities for selected investors.

In todays environment, an investor may need to assume a significant amount of additional risk in order to add incremental yield. We believe it is better to accept a somewhat lower level of income today than to push the envelope in the search for yield. Some higher yielding asset classes are richly priced and vulnerable to loss in a rising interest rate environment or credit market downturn.

06.09.14

DISCLAIMER: Past performance does not predict future results. This report is based on data obtained from sources we believe to be reliable. Hefren-Tillotson does not, nor any other party, guarantee the accuracy or completeness of this report or make any warranties regarding results obtained from its usage. All opinions and estimates included in this report constitute the firms judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation to buy or sell the securities herein mentioned.

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