Select your client type BE, English About Views Search English Views Real Assets House View No-one ever said predicting the future was easy, but this report represents our best collective judgement on the current and future investment themes we believe will shape the real assets market. CONTRIBUTORS Laurence Monnier, James Tarry, Luke Layfield, Sean McLachlan George Fraser-Harding, Renos Booth, Zoe Austin After a year where many real asset markets were rocked by COVID-19, our investment teams set out their expectations for 2021 and beyond. PDF 2.9 MB 26 PAGES Real Assets House View 2021 When we published our first Real Assets House View in February 2020, the economic outlook was vastly different to today. The coronavirus pandemic and severe economic contraction experienced in 2020 will influence real assets performance for years to come. As such, the release of this report could not be timelier. In November 2020 and during many follow up sessions, the outlook for different sectors was the subject of robust debate among the investment teams across our real assets platform, encompassing real estate, infrastructure and private debt. Our real assets research team had the task of shaping and refining the debate, and ultimately bringing the various viewpoints together into what we believe is a coherent and future-focused House View. For 2021 and beyond, we see three key themes that will shape real asset markets: UK joins Europe in zero rate environment In our view this should favour stronger performance of UK real assets over the medium term as returns adjust to this new norm – despite the headwinds of the coronavirus and Brexit. The objective of net zero carbon emissions is being enshrined in law across Europe We believe this is likely to generate a large pipeline of opportunities to invest in low-carbon infrastructure and cleaner buildings, while aligning to net zero will increasingly drive asset values. New ways of living post-COVID-19 will change the real asset investment landscape We expect to see greater differentiation of performance between and within asset classes, driven by their alignment to these societal shifts. To reflect the varying interests of real asset investors – from those interested in single asset classes to those with a particular investment outcome in mind – our House View comprises the following sections: Our methodology and central scenario; Insights for growth-focused investors; Insights for buy-and-hold investors; Insights for infrastructure investors; Insights for real estate investors; Insights for long-income real estate investors; Insights for private debt investors. We hope this document will help investors navigate this dynamic and challenging landscape. Not everyone will agree with the assumptions made or the conclusions reached. No-one ever said predicting the future was easy, but this report represents our best collective judgement on the current and future investment themes we believe will shape the real assets market. Want more content like this? Sign up to receive our AIQ thought leadership content. Professional email First name Last name Job title Company I acknowledge that I qualify as a professional client or institutional/qualified investor. By submitting these details, I confirm that I would like to receive thought leadership email updates from Aviva Investors, in addition to any other email subscription I may have with Aviva Investors. You can unsubscribe or tailor your email preferences at any time. For more information, please visit our Privacy Policy. Agree SUBSCRIBE Contributors Laurence Monnier Head of Quantitative Research – Real Assets View profile James Tarry Senior Portfolio Manager, Alternative Income View profile Luke Layfield Fund Manager View profile Important information Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (AIGSL). Unless stated otherwise any views and opinions are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. Information contained herein has been obtained from sources believed to be reliable but has not been independently verified by Aviva Investors and is not guaranteed to be accurate. Past performance is not a guide to the future. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested. 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