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.