Alternatives
Dion Di Miceli, Funds Corporate Adviser at Gravis Capital Management, said: “The volatility in equity markets serves as a reminder to investors of the considerable benefits offered by non-correlated assets which can provide stable, dependable returns through turbulent market conditions. It is our belief that this will be a key driver for increasing investor allocations – both retail and institutional – to ‘alternative’ investments through the listed fund structure. This has already been seen through 2021, with almost £12 billion of equity raised for a broad range of listed fund investments offering investors access to non-correlated returns, from infrastructure through to alternative real estate opportunities.
“In addition, we believe investors will increasingly differentiate between ‘green’ and ‘brown’ investments. As a long-term investor investing in a wide range of companies, sectors and countries, Gravis believes that integrating environmental, social and governance (ESG) considerations into investment management processes and ownership practices can help to create more successful and sustainable businesses over the long term and generate enhanced value for our clients and society at large.”
Stephen Inglis, Manager of Regional REIT, said: “Real estate can often be seen as an early indicator of direction, confidence and growth, and the market continues to see IT firms snapping up office space, with Apple being the latest. Having initially let two office floors in the City, it is now expanding to five office floors. Historically, as the investment volumes have increased in central London, the regions have followed. This is no longer the case. For September, Savills reported yield compression in the regional office market with no change in offices within M25.
“The shadow of inflation continues to tip cash currently sitting on the side-lines to seek shelter. Regional offices will thrive.”
Alex O’ Cinneide, CEO of Gore Street Capital, said: “We see alternative energy and energy transition as sectors which will continue to thrive against the backdrop of the current economic and political climate.
“Companies which retain flexibility to negotiate supply chain constraints will secure competitive advantage as bottlenecks and disruptions appear to be re-emerging. We place strong importance on participants being able to leverage and embed relationships with stakeholders throughout the supply chain.”
Bill Nixon, Managing Partner of Maven VCTs, said: “In our view, there have been encouraging levels of economic recovery in the UK in recent months, and we remain cautiously optimistic that there will be continued recovery both domestically and in key export markets. Notwithstanding the human and short-term economic impact of the pandemic, including staff dislocation, supply chain disruption, and raw material cost price inflation, the SME sector hasn’t seen a lack of available capital. VCTs continue to play an active and vital role in supporting some of the brightest emerging companies across the UK, investing in a wide range of both private and AIM-listed businesses.”
Tim Levene, Manager of Augmentum Fintech, said: “In 2022 we expect investors to continue to increase their allocations towards private assets, tapping into the ongoing trend of technology companies staying private for longer. Over the last 12 months we have seen unprecedented levels of investment in the UK and mainland Europe from the US and Asia, particularly in fintech, and there are no signs of this slowing as we move into the New Year.”
Evy Hambro, Co-Manager of BlackRock World Mining Trust, said: “We believe the outlook for mined commodity prices remains robust, whilst mining shares offer attractive value. Recovering global economic growth, accommodative monetary policy, rising government spending and increased focus on green capital investment all point towards strong demand. Meanwhile, supply is constrained following years of capital discipline from the producers and we are seeing no signs that this is set to change.”
