News

Strong, Stable and REAL Assets

by James Chu
09/06/2017
Strong, Stable and REAL Assets

Strong, Stable and REAL Assets

Finally.  The electorate have spoken and the message is clear: People do not believe in Ms May’s so called ‘strong and stable’ leadership. However, we think it is important that in this time of increased uncertainty that investors need to consider diversifying their portfolios with genuinely strong and stable investments such as real assets.

The election outcome means that the UK market may see an increased level of uncertainty in the market due to a hung parliament. In particular, it raises questions about how Britain may approach Brexit negotiations after the election has weakened the conservative party’s powers within parliament as Ms May will require other parties to support her position during the negotiations.

Whilst the market may appear to be calm this morning, generally financial markets don’t like uncertainty.  We have already seen volatility in the currency and smaller cap stocks. 

At Reyker, we keep a high level of diversification when we run portfolios.  Most managers use just stocks and bonds, but we also include alternative assets.  Our Real Asset Strategies (RAS) portfolios include investments linked to real assets like infrastructure, properties etc.  These tangible and real assets are more likely to deliver steady returns which have lower correlation with other assets.  They are the really strong and stable assets, helping long term investors to navigate through uncertainty created by the so-called ‘strong and stable’ politicians.

Just like any investments, care should be taken in selecting UK real assets as the impact of this result is likely to be localised to the UK. The key is using professional expertise to select investments that will continue to hold value regardless of the situation, such as student accommodation, affordable housing and care homes.  The Reyker’s investment team focuses in finding such investments, and as you can see from our latest factsheets, the RAS model portfolios for pension investors have been doing well.  And we expect theses real, strong and stable assets will continue to support performance of these model portfolios.

Our investment team can help professionally advised clients through our RAS portfolios which are focussed on finding real asset linked investments that are likely to outperform in these uncertain times. Give our team a call on 020 7396 2597, or drop us an email at investments@reyker.com, and find out how our managed portfolio solutions could help you or your clients. Unlike many managers, our professional team is only one phone call away and would be more than happy to help you to build a ‘strong and stable’ portfolio.
James Chu

James Chu

James is Director of the Markets and Investments Team at Reyker. A CFA member and industry expert, James specialises in Structured Products, derivatives and development of service offerings for Reyker. A face at most industry events, James is sure to provide insight into some of the most controversial topics in the market today.