Why Infinity’s Piers Bolger is betting on REITs and real assets again
The multi-asset fund allocator has been building a position in REITs and real assets over the last 12 months as the era of peak interest rates recedes.
Infinity Asset Management’s chief investment officer Piers Bolger, like a growing cohort of investors in the market, is seeing the beginnings of a fresh cycle for the real estate investment trust (REIT) sector as the peak interest rates era comes to an end.
The tide began to turn for the S&P/ASX200 A-REIT index in November last year and it has since run up 35%, spurred along in September this year by a Federal Reserve interest rate cut of 50 basis points and then again in November when it made a 25 basis point cut.
Bolger, a multi-asset fund allocator, expects more joy in highly interest rate-sensitive sectors that have suffered pain throughout the post-pandemic inflationary cycle, and has been building exposure accordingly. Infinity has increased its position in REITs and real assets to 9.5% across its balanced portfolio from about 3% this time last year.
Speaking with Capital Brief for Past Performance, a Q&A series with top investors on their mistakes, contrarian bets and what lies ahead, Bolger shared his views on some of the opportunities he’s seeing, the broadening performance base in global equities, and how he approaches risk.
