Mediterranean real assets — a 2026 mid-year reappraisal

At the mid-point of 2026 we have reappraised the role of Mediterranean real assets in client portfolios. Selective exposure to logistics, energy infrastructure and prime real estate across the southern eurozone continues to earn its place — chiefly as a source of durable, inflation-aware income.

Real assets do something bonds and equities cannot do alone: they combine contractual cash flows with a degree of inflation linkage and a low correlation to daily market sentiment. In a world of measured disinflation, that combination remains valuable.

Where we are adding, and where we are not

Adding. Logistics assets tied to regional trade, energy infrastructure with regulated or contracted revenue, and prime real estate in supply-constrained locations.

Cautious. Secondary real estate dependent on cyclical demand, and development exposure where financing and construction risk are not adequately compensated.

Liquidity is the discipline that makes the rest work. We size illiquid holdings against a clear plan for the cash a family will actually need, so that long-horizon assets are never forced sellers at the wrong time.

Held this way, real assets are a complement to the portfolio's core, not a substitute for it.

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This commentary is provided for information only and does not constitute investment, tax or legal advice. The value of investments and any income from them can fall as well as rise. Figures cited are illustrative for this prototype.