Real assets are increasingly attracting the interest of investors, according to a Time Investments survey of independent financial advisers and wealth managers.
More than one-third of advised clients are investing in real assets, which includes real estate, infrastructure, gold or oil. Some 21% of advisers questioned cited a year-on-year increase in real asset investing, with just 6% seeing a decrease.
The research also indicates that advisers expect diversification into real assets to continue over the next 12 months, with 44% predicting an increase in investments in the asset class. The primary driver for this is the desire to de-risk portfolios (53%), followed by the need to reduce volatility (18%) and to provide secure income streams (15%).
Henny Dovland of Time Investments, which provides property and infrastructure investments, said: “More advisers and their clients are turning to real assets such as property and infrastructure as a significant part of their investment portfolios to help counterbalance the risk as a result of continuing economic and political volatility. These investments are usually lower risk and volatility, providing more secure income streams which is particularly important for those approaching or in retirement.”
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