Investor demand for real assets continues to grow despite macro and political concerns, despite a challenging political and economic environment. Investors are attracted by the diversification on offer and potential illiquidity premium over public markets, according to Aviva Investors’ 2020 Real Assets Survey.
“The boundary between infrastructure, real estate, and private debt is increasingly blurred. Investors are looking for multi-asset portfolios with an outcome-oriented focus, whether that be growth, long income, or predictable, inflation-matching cash flows,” says Mark Versey, CIO of Avia Investors Real Assets. “New entrants and rising allocations from existing investors increase the risk of overcrowding and of returns being squeezed in well-trodden areas of the market. Investors need to consider this when building strategies to ensure they achieve the best possible outcomes.”
The findings also emphasized the increasing importance investors plac