12 Aug 2014
Peter Askew, senior fund manager, T Bailey Asset Management, Nottingham
‘At a time when most fixed income investments are at artificially low yields due to quantitative easing (QE), the multi-asset investor must look beyond the conventional to find assets that can deliver the appropriate yield without undue duration or credit risk.
‘The SQN Asset Finance Income fund has a targeted yield of 7.25% and minimal interest rate risk, as returns are secured by hard, business-essential assets on equipment leases. The assets leased out typically have a high residual value and a long economic life, giving further security to SQN’s investors.
‘It offers predictable cashflows, collateral and an implicit inflation link, all with a low correlation to other asset classes.’