According to the UN, the global population will rise by over 2 billion people over the next 30 years, with most of this growth coming from emerging markets. The implications of a growing and ageing population are deep and wide ranging. While the opportunities we seek are long term in nature, there is a degree of alignment with a few of the current investment trends and themes:īusinesses across the world are investing in real assets that fulfil the needs and requirements of larger populations and more concentrated population densities. Examples include offshore wind farms and water desalination companies. By their very nature they can benefit from, or cater for, economic or demographic changes rather than fall victim to them. We invest in assets that form part of the foundation of a functioning economy. While the nature of the cash flow will differ from asset to asset, they all help to manage risk over the longer term. This means we look for assets that can generate stable, predictable cash flows that can increase with inflation. For us, they are an important way of diversifying risk within a balanced portfolio, so we deliberately focus on those that are defensive in nature. Renewable energy generators, such as wind and solar farmsĭifferent types of real assets behave in distinctive ways, and they won’t all share the characteristics we are looking for when investing on behalf of clients. Property that generates an income, such as student accommodation, warehousing and private rental housing Infrastructure, such as schools, roads and hospitals The best way to think of real assets is that they are physical or tangible investments that have an intrinsic value to society. So what are real assets? And why do they represent, in our view, a compelling investment opportunity? In particular, real assets have enjoyed a surge in popularity – a trend that looks set to continue. Are real assets a compelling investment opportunity?Īgainst a backdrop of increasingly volatile equity markets, geopolitical risks and continued economic uncertainty, investors have been looking to alternative asset classes to meet their financial goals.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |