Energy. Mining and minerals. Timber. Agriculture. Private real assets provide the potential to generate additional returns relative to public equities while providing greater diversification and the possibility of added inflation protection.
These investments typically have lower correlations to traditional assets such as equities and fixed income. As a result, they offer a way to achieve better portfolio diversification.
But these opportunities can be difficult to find and access, and may require additional due diligence. Our team can help you open up the possibilities in private real assets.
It takes substantial time and resources to identify managers with strong track records investing in these types of assets. We focus on finding small and mid-sized managers, using a global network of locally based investment professionals with specialized knowledge of real assets.
Our team looks across the globe for opportunities in real assets. We conduct comprehensive, detailed research to select managers that we believe have the experience and operational expertise needed to successfully invest in the space.
Above all, we work with our clients as an extension of their team through bespoke real assets mandates and separate accounts.
Correlation of real asset returns and inflation
Sources: Flexshares, MSCI, Bloomberg, Morningstar Indexes, FTSE, Barclays. The data range for all indexes March 31, 2006 – January 31, 2016 represents the correlation of monthly returns for Global Natural Resources, Real Estate, Infrastructure, U.S. Equities and Blended Fixed Income with 1 month lagged U.S. Consumer Price Index Non-Seasonally Adjusted over the data range available for each index; Global Natural Resources – Morningstar Global Upstream Natural Resources Total Return Index, Global Real Estate – FTSE EPRA/NAREIT Developed Index, Global Infrastructure – Morningstar Global Equity Infrastructure Net Total Return., Equities – MSCI World Total Return Equity Index, Fixed Income – Barclays Global Aggregate Bond Index. All Real Asset indexes contain publically traded equity securities.