Encouragingly, regardless of concerns around the eurozone or global growth, there are still opportunities for income seeking investors. A key approach to investing is one of being selective. Focusing on good quality companies and assets, across global markets brings a degree of diversification which can mitigate volatility while the economic outlook is challenging.

Mike Turner is head of global strategy and asset allocation at Aberdeen Asset Management

KEY POINTS

• If dividend reinvestment is stripped out of overall returns in the past 60 years, then the return from equity markets is lower than that from bonds

• Property and infrastructure investments are two good examples of alternative sources of steady investment income

• The diverse nature of fixed income, however, means that it should not be written off merely on the basis of seemingly overvalued government bonds

• A popular way for investors to manage their fixed income exposure has been to delegate allocation decisions by utilising strategic bond funds

• Emerging market bonds remain untapped territory for many UK investors