Asset class insights

Real assets

Evergreen funds are playing a key role in accelerating and opening up access to private markets for private investors. European wealth managers now have a mechanism that allows their clients to invest in the real economy and diversify their 60/40 portfolios. Although still early days, a HNW investor with an existing 60/40 exposure to stocks and bonds could soon find they are able to diversify towards a 50/30/20 portfolio, with private markets making up 20% of their investment exposure.

Real assets – including unlisted real estate, infrastructure and even timber/agriculture – are expected to be an important fixed income diversifier, given the defensive, predictable cash flows and inflation hedge protection these investments typically provide.