In an exclusive Professional Pensions webinar, Aviva Investors chief investment officer of real assets Mark Versey talks about the benefits and challenges of real assets and some of the key issues for trustees and other investors to consider when making investments.
Versey says that the diversification and cashflow-matching characteristics benefits of real assets are well known and, with bond yields likely to remain compressed into the future, it is likely that pension scheme investors will continue to look to the asset class to help improve returns.
In the webinar, he also talks about the growing influence of environmental, social and governance (ESG) factors - discussing how the integration of ESG into real asset portfolios could be easier as investors are able to exert more influence over decision-making.
But the sector is not without its challenges, as Versey notes. With new entrants coming to the party and existing investors increasing their allocations, there is a risk of overcrowding - and rising prices - in parts of the market; while liquidity and the speed of deployment also are a concern for some.