In last year’s outlook, Covid-19 was front and center in our views and outlooks across all asset classes. A year later, we are beginning to return to a more normalized pre-Covid lifestyle and with that, a recovery in many of the sectors impacted in 2020. One of the topics being debated among investors is the potential for inflationary pressure, a portfolio risk that hasn’t emerged in several decades. That discussion has reignited interest in real assets and capital flows into the asset class.
The Verus 2021 Real Assets Outlook includes insights around the following trends:
- Divergence in the recovery of real estate. The pandemic accelerated trends in real estate and created a new set of challenges and opportunities. The growth in alternative property types (self-storage, medical/life science office and single-family rentals) is likely to continue to displace investments in retail and traditional office assets.
- Most infrastructure assets held up well during the downturn and with the specter of inflation and low interest rates, appears fairly attractive to institution seeking alternative sources of income and greater inflation sensitivity.
We look forward to discussing this research with you.