New research among independent financial advisers and wealth managers commissioned by TIME Investments, shows that over a third (36%) of advised clients are investing in real assets. Real assets are defined as a physical or tangible asset, such as, real estate, infrastructure, gold or oil, that has value due to its substance and properties. One fifth (21%) of advisers questioned cited an increase in real asset investing compared to 12 months ago, 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%).
When it comes to real asset investments, 64% of advisers said that clients who want to accumulate wealth should consider the asset class, followed by cautious investors (34%), those that require income drawdown (32%), and investors who are retired (26%) or are approaching retirement (23%).
For clients with exposure to real assets, advisers are recommending that 25% of the portfolio should be invested in real assets in the current economic climate.
Henny Dovland of TIME Investments comments: “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.”
TIME Investments provides a range of property and infrastructure investments. Its flagship fund, TIME:Commercial Long Income, has surpassed £400m assets under management (AUM). The growth of the Citywire AAA rated fund over the past 12 months has been driven by investors increasingly looking to de-risk their portfolios by investing into a more defensive fund which provides comparable income with lower volatility through a diversified portfolio of commercial long income properties.
Now in its sixth year, the daily-dealt fund has generated a total return, for the twelve-month period to 30 November 2019 of 4.33% which is consistent with previous years and inclusive of income, of 3.31% and capital growth of 1.02%.
Last year, TIME launched its TIME:Defensive Income Securities fund in response to demand from advisers and their clients for an alternative, liquid, equities-based income fund with lower volatility and more predictable income than traditional equity income funds.
The over £40 million, open-ended fund targets an annual income return of at least 5% and capital growth over the long-term from a portfolio of high quality, lower volatility investments in listed infrastructure, renewable energy companies and real estate of asset backed companies.
The fund uses a unique and proven investment process utilising a combination of active and factor-based investment strategies. Based on these filters, a balanced portfolio of income-producing securities is acquired on a “buy and hold” basis.
Notes to editors
Research conducted by PollRight among 50 UK-based professional financial advisers during September 2019.Posted: 23/12/2019 Categories: Income, Infrastructure, News, Press, TIME:Commercial Long Income, TIME:UK Infrastructure Income