New research suggests that 59% of financial advisers expect a significant increase in the number of clients seeking to secure a steady income from their investments over the next 24 months.
Some 57% predict a significant shift towards capital preservation as levels of volatility and uncertainty in the markets continue.
The findings come from new research by long income managers TIME Investments.
Other revelations include the fact that 66% of advisers also predict a greater focus on portfolio diversification by their clients, with 56% citing a move to alternative investments and a shift away from equities and bonds as they seek greater predictability of returns.
What’s more, with 71% of advisers expecting inflation to increase over the next 24 months, some 55% expect more investors to turn to inflation-linked products. In line with this prediction, half of those questioned expect greater demand for long-income funds which are inflation-linked. These have low correlation with traditional property funds and mainstream asset classes, which have experienced much more volatility over recent years.
Henny Dovland of TIME Investments said: “Today’s markets are uncertain and with political and economic events dominating the agenda, investors can expect conditions to remain unpredictable and volatile for the time being. Long-income commercial property avoids the volatility associated with some traditional real estate investments and offers the potential to deliver stable, secure income over the long-term, capital preservation and protection against inflation.”
