News & Insights

As higher inflation rears its head once more and potentially threatens to stick around for a while, the risks to investors are widespread.

During times of rising inflation, businesses face higher costs and borrowing rates, affecting their stocks in the process, while conventional bonds lose purchasing power as their fixed payments are worth less.

That’s driving many advisors and their clients to consider other asset classes in the search for diversification, portfolio protection, long-term growth and yield. Real assets are one, comprising sectors such as real estate, utilities, infrastructure and resources.

Theresa Shutt, chief investment officer at Harbourfront Wealth Management Inc. in Toronto, says infrastructure can draw its value for clients from the durability of its cash flows. A toll road, airport or pipeline may earn revenue through long-term agreements, with high barriers to competing assets being built.

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Read the article on the Globe and Mail website: How real assets can help investment portfolios weather inflation – The Globe and Mail