The search for investments that can deliver returns that are less sensitive to traditional market moves has led to increasing interest in so-called 'real assets'. Gill Hutchison offers an overview of the sector
Traditional asset classes have enjoyed a remarkably strong innings for many years. As an example, a portfolio consisting of 60% in global equities and 40% in global government bonds would have generated a total return of around 7% a year (compounded) over the past 25 years (source: Waverton Investment Management, based upon the FTSE All-World Total Return and FTSE World Government Bond indices, in sterling terms). Fixed income contributed meaningfully to this fine outcome - for example, the 10-year gilt began this period with a yield above 8.5% and it now resides at around 1.3%. This mov...
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