Since the onset of the global financial crisis in 2008, income investors in the UK have been under particular pressure to achieve their objectives of a rising investment income and capital preservation.
With interest rates on cash falling to near zero, the yields available from other investments quickly followed in the same downwards direction.
The entire banking sector came under immense pressure to slash dividends and bond yields dropped to record lows as investors flocked to the relative safety of gilts.
Even the income available from commercial property, whilst initially looking more attractive as capital values fell, came under increasing pressure with the failure of big name retailers.
Whilst there are some indications that investment income levels are starting to return to a more tolerable level, the challenge for income investors remains stark.
The Search for Income by Maike Currie
This new book from investment journalist Maike Currie arrives at the perfect time and is an invaluable resource for income investors. In fact, the elements of investing are so well explained in this book that those investing for capital growth will also benefit from having this in their library.
Maike takes readers through the basics of investment income before describing each of the main investment income asset classes. The explanation of the various investment terms and calculations relevant to income investors are some of the clearest I have seen.
As well as providing a clear explanation, The Search for Income is a very practical read. Maike uses real-life examples of funds, platforms and portfolios to illustrate the different approaches to income investing.
Aimed at the retail investor, this book is equally valuable for professional advisers who want to improve their understanding of the issues and refresh their knowledge.
One benefit of the recent publication of this book is that it contains explanations of some of the most popular current investment options, including Exchange Traded Funds (ETFs) and infrastructure funds.
As a Chartered Financial Planner, I devote a great deal of time each month to reading and keeping my knowledge up to date, particularly in respect of investments. The Search for Income is one of the best investment books I have read to date and I can recommend it to anyone with an interest in the subject.
Photo credit: Flickr/alancleaver_2000
