Back on the agenda, what could this mean for Real Assets? It's reported it is over the next 10 years we will more likely see higher inflation, exceeding the European Central Banks 2% target for lengthy periods. Is it now time to hedge? Real Assets managers have continued to enjoy inflation-hedging characteristics. It further enhances the appetite for real assets - a survey from BlackRock found that 55% of clients intended to increase their allocations to real assets, with 49% planning to increase real estate allocations. Infrastructure has a host of other reasons why investors feel it's an important asset class, largely due to the long term nature of investments. Another economic shift that will increase flows, as investors eye infrastructure following government backed projects in the coming years.
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