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The rise of the Real Assets Umbrella, an IPE conference hot topic with Amundi Asset Management

Dominique Carrel-Billiard, the global head of real and alternative assets at Amundi Asset Management, gave a 15-minute keynote address on The Rise of the Real Assets Umbrella at the IPE Real Assets & Infrastructure Global Investor Conference 2020 in September.

Carrel-Billiard (pictured) reminded that “given their historical track record and the current market circumstances, it is clear that real assets offer among the most attractive risk return profile in the universe of investable assets”.

He added that “real assets investing has become a world made of platforms and the structure of the industry will follow a pattern already experienced by the broader asset management industry, marked by the domination of global giants as well as the thriving success of hyper specialists. This so-called Barbell Theory will also become the norm for real assets.”

Carrel-Billiard concluded on the foreseeable future: “Amundi is aligned with the best-in-class data providers such as our partner Preqin and Boston Consulting Group, as we expect the rise of real assets to continue to reach probably around 20% of total assets managed by 2025. That’s $18 to $20 trillion of alternative assets globally compared to $11 trillion today, and a staggering 60% growth!"

Watch the video here

This keynote presentation was followed by a panel discussion where Guy Lodewyckx, Amundi's head of private markets multimanagement, and his co-panelists Sabine Braad, senior director for global direct investments at ATP, and Anish Butani, senior director for private markets at bfinance, discussed the same topic. A big part of the discussion was about how portfolios performed during the Covid-19 crisis and what are the impacts on the longer-term investment trends.

Lodewyckx highlighted that “Amundi doesn’t really believe in market timing for real assets given their long-term nature. Risk management is more important than entry price as real assets present a complex mapping of risks.”

Watch the video here