Stocks or bonds for income? Why not have both

LiveWire

Aug 01

Whilst many investors have had dividend stocks and bonds in their portfolios over the journey, having them both in a single vehicle is a fresh take. That's what the WAM Income Maximiser does (ASX: ...

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

1
2
3
4
5
6
7
8
9
10

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2556560918"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2556560918\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2556560918?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-08-01 04:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2556560918","market":"us","top_or_hot":-1,"title":"Stocks or bonds for income? Why not have both","media":"LiveWire","content":"<div>\n<p>Whilst many investors have had dividend stocks and bonds in their portfolios over the journey, having them both in a single vehicle is a fresh take. \nThat's what the WAM Income Maximiser does (ASX: ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/stocks-or-bonds-for-income-why-not-have-both\">Source Link</a>\n\n</div>\n","source":"livewire_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Stocks or bonds for income? Why not have both</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nStocks or bonds for income? Why not have both\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-08-01 04:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.livewiremarkets.com/wires/stocks-or-bonds-for-income-why-not-have-both><strong>LiveWire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Whilst many investors have had dividend stocks and bonds in their portfolios over the journey, having them both in a single vehicle is a fresh take. \nThat's what the WAM Income Maximiser does (ASX: ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/stocks-or-bonds-for-income-why-not-have-both\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"WMX.AU","symbol_name":"WAM Income Maximiser Limited","start_time":0,"source_url":"https://www.livewiremarkets.com/wires/stocks-or-bonds-for-income-why-not-have-both","article_id":"2556560918","we_media_id":null,"thumbnails":[],"rights":{"source":"livewire_stock","url":"https://www.livewiremarkets.com/wires/stocks-or-bonds-for-income-why-not-have-both","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2556560918","pubTimestamp":1753992045,"columns":[],"sourceInfo":{"source_id":"livewire_stock","name":"Livewire Markets"},"weMediaInfo":null,"summary":"Whilst many investors have had dividend stocks and bonds in their portfolios over the journey, having them both in a single vehicle is a fresh take.That's what the WAM Income Maximiser does . It invests in high-quality Australian companies, as well as debt instruments .So, why has Wilson Asset Management built such a strategy?According to Portfolio StrategistDamien Boey, there are three reasons:. \"We are living in a world where inflation is a bit higher than normal, so we do think that people want to have an income that is suitable after inflation\".\"Our shareholders overwhelmingly wanted a monthly income product, so we decided to meet that need.\". \"The hybrid securities that are issued by banks. They are essentially debt securities that banks issue, but are convertible into equity under certain triggers. The Prudential regulatory authority has essentially phased them out. So a lot of people are therefore looking for a replacement or an enhancement on that sort of product.\". Whilst thos","collect":0,"end_time":0,"defaultTopTitle":"livewiremarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"WMX.AU":"WAM Income Maximiser Limited","BK7145":"房地产开发","LIC.AU":"Lifestyle Comnts"},"translate_title":"股票还是债券的收入？为什么不两者兼得呢","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"LIC.AU":1,"WMX.AU":1},"content_text":"Whilst many investors have had dividend stocks and bonds in their portfolios over the journey, having them both in a single vehicle is a fresh take. \nThat's what the WAM Income Maximiser does (ASX: WMX). It invests in high-quality Australian companies, as well as debt instruments (bonds). \nSo, why has Wilson Asset Management built such a strategy? According to Portfolio Strategist Damien Boey, there are three reasons: \n\n\n\"We are living in a world where inflation is a bit higher than normal, so we do think that people want to have an income that is suitable after inflation\". \n\"Our shareholders overwhelmingly wanted a monthly income product, so we decided to meet that need.\"\n\"The hybrid securities that are issued by banks. They are essentially debt securities that banks issue, but are convertible into equity under certain triggers. The Prudential regulatory authority has essentially phased them out. So a lot of people are therefore looking for a replacement or an enhancement on that sort of product.\" \n\nWhilst those are the functional reasons, there's also the fact that the world has \"gone very growthy in terms of equity\", adds Boey. \nBy that, he means technology stocks and similar ilk that offer you a payout in the very long term, but not necessarily in the short term. \n\"So we decided to create a product that\nwe think goes against that trend, so that we can offer some diversification, just\nin case that trend were to unwind\", said Boey. \nTo learn more about the WAM Income Maximiser, make sure to watch the video above or read a summary of the interview below. \n\n\n\n\n\n\n\n\n\nDamien Boey, Portfolio Strategist, Wilson Asset Management\nINTERVIEW SUMMARY\nOne vehicle, two levers: Why blending equity and debt matters\nWhat makes WMX stand out, Boey says, is its structure. It's the only listed investment company (LIC) in Australia that actively invests across both equities and debt instruments.\n“The listed investment company can do two things,” Boey explained. “Firstly, it has the ability to smooth the earnings to be able to convert that into a dividend. And then secondly, it has the ability to generate its own franking.”\nCrucially, the dual focus on equities and debt offers something most high-yield equity funds don’t: flexibility.\n“If you're a high dividend yield investor, you're typically investing in companies that are cheap – and often they're cheap for a reason. It can take a while before they actually recover,” Boey said.\nRather than getting stuck in so-called ‘value traps,’ WMX can lean on its bond allocation to support income needs, while giving the equity sleeve more freedom to pursue capital growth opportunities.\n“We want to be able to generate the higher-than-average income, but we want to flex the debt side of the portfolio to do that, which in turn frees up the equity portfolio to pursue those opportunities for capital growth where they arise\". \nThe macro challenge: Navigating a distorted environment\nWMX targets a yield of the RBA cash rate plus 2.5%. To do that sustainably, Boey says investors must understand the unique and distorted environment we’re currently in.\n“We are in a world characterised by incredibly high correlation between government bonds and stocks,” Boey said. \n“If interest rates go down, bonds rally… and stocks tend to go with them.”\nThat’s a major departure from historical norms – and it creates serious problems for traditional passive strategies, which rely on uncorrelated assets to balance risk.\n“You lose that diversification benefit,” Boey said. “Basically, you are saying, ‘I think interest rates will fall to make the market go up’ – and the way you would express that is through a really bullish view on the right sorts of equities, not government bonds.”\nBoey also highlighted the presence of strange pricing signals in bond markets – like persistently negative swap spreads – which are often a function of excess leverage and the central banks’ reluctance to let funding markets fail.\n“All of that means distorted bond pricing,” he said, “and it makes it very hard to see how financial conditions are going to tighten enough to sustainably bring inflation down.”\nThat, Boey says, is why active management and adaptability are vital.\nThe tools to adapt: Active levers for income and growth\nTo deal with this complexity, WMX is highly active across four key levers:\n\n\nDuration management: “We can go longer or shorter duration, fixed or floating rate\".\n\nCredit quality adjustment: “We might take on higher-yielding corporate credit if it’s a risk-on environment\".\n\nDynamic asset allocation: “We can swing between debt and equities depending on what we’re seeing\".\n\nEquity style tilts: “We can reweight by sector, style, or geography – especially in such a crowded investment space\".\n\n\nThis flexibility is anchored to a 60/40 equity-debt benchmark, but Boey stresses it’s not static.\n“We can technically max the weights between zero and 100 on either side,” he said. “Typically, we’ll move around 10–15% either way, but it’s all about pursuing maximum return within each sleeve before we wholesale shift the mix.”\nA core income diversifier – with an eye on total return\nSo where does WMX fit within a broader portfolio? Boey is clear on that.\n“What we want to be able to do is provide that longer-term diversification for shareholders while providing the income,” he said. “The two go hand in hand.”\nImportantly, WMX doesn’t sacrifice capital growth in the pursuit of yield. “We don’t want to be so blind to just investing in income that we leave growth on the table,” Boey added.\nUltimately, WMX is built to generate reliable income in an uncertain world, with the flexibility to pivot between opportunity and protection.\n“It’s a vehicle that can play the short-term continuation of recent themes,” Boey concluded, “but also position against unwinds of them for the longer term.”\nA perfect combination of income and growth\nWAM Income Maximiser (ASX: WMX) aims to provide monthly franked dividends and capital growth to shareholders by investing in Australia’s highest quality companies and corporate debt instruments. To learn more, visit the Wilson Asset Management website.\n\n\n\nNever miss an update\n\n    Enjoy this wire? Hit the ‘like’ button to let us know. \n    Stay up to date with my current content by \n    following me below and you’ll be notified every time I post a wire","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}