Investment consultant and fiduciary manager Cardano has cast doubt on the value of investments in ground rents at a time when a number of asset managers are marketing funds offering that type of exposure as an opportunity to diversify portfolios and access stable inflation-linked returns.

Cardano called support for those investments "misguided" in a note on Monday, questioning the size of the investible universe of the assets and arguing that investments tie up pension fund assets for a long period of time without offering high returns.