Broad global economic expansion is making assets expensive, so forget investing passively, an investment manager told CNBC on Thursday.
Instead, he recommend considering niche growth areas like avocados.
"Be very specific about what you do. Look for idiosyncratic, value and unusual niches rather than broad assets and broadly passive allocation," said Stephen Diggle, founder of Singapore-based Vulpes Investment Management.
The firm has invested in agriculture since 2009, putting money into avocado and kiwi cultivation in New Zealand, Diggle told CNBC on the sidelines of the UBS Global Family Office Conference in Singapore.
Agriculture has "got some very good yield characteristics unlike global bonds. It also has some good inflation protection, especially unlike bonds," he added.
In the case of avocados — for which millennials have a taste — Asia is also a huge growth market, Diggle said.
"Hong Kong and Singapore act as the harbingers of what broader Asian consumers do. And right now, Singaporeans and people in Hong Kong are eating avocados and we'd expect more and more Asian consumers to do the same thing," said Diggle.
"Income generation from a successful orchard would be way above what you can currently get from a portfolio of safe, low-risk bonds," he said.