US and global infrastructure demands will generate new long-term investment opportunities which carry attractive dividends to high net worth families, Wigmore Association chief investment officers recently concluded at a meeting in Toronto.

The nature of these investment assets - long-term, low risk, and usually carrying significant dividend components - is very “attractive to high net worth families,” they said, explaining that public sector projects such as bridges, highways and hospitals are increasingly being supplemented by new private and public partnerships.

In terms of inflation, the CIOs forecast a “viable threat” of a period of inflation over the next three to five years. However, they stressed that despite a lack of short-term pressure, this “in no way diminishes the longer-term risk.”

“Most members are advising clients to reduce core fixed income holdings in favor of more strategically diverse holdings, such as emerging market debt and non-discretional hedge funds,” the association said.

Keeping an eye on Europe

Meanwhile, the group continues to closely follow events in Europe, remaining “cautiously positive” in the short-term and hopeful that political and financial leaders will create permanent solutions.

In the meantime, the association is homing in on the growth potential in emerging markets. Earlier this week, it added Brazil-based Turim Family Office Investment Management, as it expands its horizons into Latin America, for example. Turim is hoping to leverage the network to better serve its clients in Brazil, by providing access to a wider pool of investment research.

“The growing importance of South America, and Brazil in particular, on the world economic stage is undeniable. We look forward to gaining their insights and perspective on the challenges of managing family wealth,” Marc Hendriks, chief investment officer of SandAire, said earlier this week. 

The Wigmore Association is a group of multi-family offices which collaborates on investment research. The group was formed in late 2011 and consists of Pitcairn and five other companies: The Myer Family Company (Australia), HQ Trust (Germany), Northwood Family Office (Canada), Progeny 3 (US), and SandAire (UK).

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