For this reason, they represent good value for the medium-sized investor. US telecoms that have had to invest significantly in new networks, but who now have strong assets and offer reliable returns from customers are also favoured.

Japanese equities are undervalued

But there is also value outside the US. The Japanese equity market remains undervalued, again if you pick the right stocks, and there is significant long-term growth potential coming from India.

On the fixed income side bond prices are very high, which has pushed down yields to almost nothing – and even negative territory in some cases. There are still decent yields to be found, but you have to know what you are looking for and you have to know where to look.

Supermarket property is a strong proposition for fixed income

It is still possible to generate 6 to 8 per cent coupons on more esoteric asset-backed debt investments that present investors with an acceptable level of risk. A good example of other asset classes that display fixed income type characteristics is a fund that owns supermarket properties fully let on long index-linked leases to the biggest names in the UK grocery sector with excellent covenant strength.

This offers an almost guaranteed index-linked rental income that generates net yields of around 5 per cent. Yes, it is a bet that supermarkets will continue to thrive, but the experience of Covid-19 has shown that they are one of the few sectors, particularly within property, that have come out on top.

Shipping is another appealing asset class, but focusing on smaller, so-called 'handysize' and 'supramax' bulk carriers that are less exposed to the dramatic swings in commodity markets that tend to be driven by demand from China. 

Go for gold

It is also wise for clients to have some gold in their portfolios. A little gold brings an important hedge, and as we all know it tends to outperform in difficult economic markets. In recent months it has become a more attractive asset class, particularly in an environment of negative real interest rates.

There are multiple ways to be a successful medium-sized investor and each strategy has its own nuances making it essential to find the right advice and approach for your clients. 

William Buckhurst is head of fund research and investment director at Vermeer Partners