“Even with inflation so low it does not matter because the alternatives are even lower.
"So Inflation-linked projects are going to be quite important and they offer that kind of security because they are government-backed and longer term. They offer the stability that an ageing population will look for in some respects.”
Mr Wilson adds: “Real assets, while lagging financial assets for the last few decades, are likely to perform much better, over the next ten years.
“Some investment mandates are better set up for such a regime shift than others, and certainly a different mentality will be required for most portfolio managers and investors per se.”
Bonds may not work for investors in the long term, but Mr McDermott says although government bonds are not likely to be viewed as good long-term value investment, they might have a shorter term attraction, as they give safety in a portfolio.
