What you should know about income-payout funds - The Business Times

[SINGAPORE] An interview in October with Pimco chief investment officer Dan Ivascyn made me sit up.

Market yields are now the most attractive they have been over the past two decades, he said. It is an opportunity for long-term investors like retirees to lock in a relatively high current income.

The clincher was the strong historical correlation between the starting yield of fixed-income assets and the return that accrues to investors over three to five years. The correlation, based on data supplied by Pimco, is 95 per cent.