Monday, June 17, 2024

Investors plan to increase allocation to real estate and infrastructure

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Investors expect to increase allocations to real assets over the next 12 months, according to a recent study by Time Investments.

Just over three-quarters (76 per cent) of respondents expect to increase their allocation to real estate over the next 12 months, with 74 per cent for infrastructure, according to the survey of 200 UK wealth managers, financial advisers, discretionary fund managers, fund selectors and investment analysts. 

Time said this meant that they could benefit from macro conditions, which were looking more favourable for real assets in 2024, and discounts could continue to close for listed assets.

Time said the catalyst to increase allocation to real assets was driven by a number of factors the research found, including: a desire to de-risk portfolios through diversification (67.5 per cent); an increased focus on ESG (60.5 per cent); and a desire for secure income streams (44.5 per cent).

The research also showed that the majority (70 per cent) of advisers predicted a challenging economic climate and investment environment and did not expect conditions to improve for at least 12 months. 

Andrew Gill, co-fund manager of Time UK Infrastructure Income, said: “In the short term, we share the view of advisers that uncertainty and volatility is likely to persist. 

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