MLPs, Financials Are Prime Spots to Build Income in a Trump World

Investors need to adapt to the new political environment or be left behind, says one fund manager.
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The election of Donald Trump has sparked a widespread trend reversal in the market, and investors need to adapt to the new environment or be left behind, said Collin Bell, portfolio manager for the Goldman Sachs Income Builder Fund (GSBIX) - Get Report .

"The previous period was defined by globalization, free trade, limited fiscal policy, sluggish growth and low bond yields," said Bell. "There is a major reversal at play and Trump has been the accelerant."

The Goldman Sachs Income Builder Fund is up 7.7% thus far in 2016, according to Morningstar. The $2.1 billion fund has returned an average of 8.8% annually over the past five years, outpacing 95% of its rivals in Morningstar's blended fund category. The fund sports a trailing 12-month yield of 4%, according to Morningstar.

In terms of sectors, Bell is positive on financials, saying current valuations don't reflect the improved regulatory and capital environment. Similarly, Bell believes the energy sector, especially pipeline master limited partnerships, will benefit from less red tape under a Trump administration, and lower taxes.