Perth financial planners who recommend real estate as a way to diversify portfolios are on the right track if a recent AMP Capital blog entry is any indication. The blog post being referenced is called, “Strength in real assets to continue – 2016 outlook.” The article had contributions from AMP Capital’s Heads of Infrastructure Equity, Infrastructure Debt, Global Listed Infrastructure, Property and the Deputy Head of Global Listed Real Estate.*
Generally, the real estate and infrastructure managers of AMP Capital expect global demand to strengthen in 2016 for all of the above listed categories. Here are capsules of each asset class projections for 2016 according to their respective managers.*
Boe Pahari, Global Head of Infrastructure Equity
Mr Pahari expects the markets to be the most active in North America and Western Europe. More managers are expected to launch funds during 2016, making this segment more competitive. Also, larger investors appear to be developing a preference for direct investments in infrastructure assets.*
Andrew Jones, Global Head of Infrastructure Debt
2016 is projected to provide ample opportunities in the infrastructure and senior debt spaces. Sectors projected to develop strong investment opportunity and activity are the US energy sector and assets in transport, energy and utilities on OECD countries.*
Tim Humphreys, Global Head of Global Listed Infrastructure
Demand for global listed infrastructure has been strong over the past decade. That demand is expected to continue throughout 2016. Rate decisions from the US Federal Reserve could have a negative effect, but nobody knows how many further rate hikes there will be.*
Carmel Hourigan, Global Head of Property (Direct Real Estate)
Australian unlisted commercial property is attractive when compared to other asset classes due to high returns. Capital markets will determine the performance of this class in 2016. Melbourne and Sydney office space, along with high quality regional shopping centres, look particularly good.
James Maydew, Deputy Head of Global Listed Real Estate
This market is strong, especially in Europe, but there are other opportunities, too. Office, retail or residential space in the Central Wards of Tokyo, Mid/Downtown Manhattan and London West End look very attractive.
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*AMP Capital. “Strength in real assets to continue – 2016 outlook.” 27 January 2016.
