Amidst a bull market in REIT fundamentals, interest-rate-driven corrections have historically presented buying opportunities for long-term investors.
As economic growth trends higher, conventional wisdom suggests that investors reposition portfolios away from interest-rate-sensitive bonds and into those securities that are more credit sensitive. Within credit-sensitive fixed income, we see better value in preferred securities than in high-yield bonds.
After a prolonged bull-market for bonds, we are keenly aware of a potential rise in interest rates. We believe important keys to navigating the potential impact of higher rates on preferred securities is found in structure selection and the active management of credit risk.
Many U.S. REITs can currently be purchased at prices that are closer to their underlying asset values compared with the higher premiums typically seen in the past four years.
Preferred securities currently offer some of the highest yields in fixed income. But after tax, they may also provide an income advantage—regardless of your tax bracket—that exceeds other fixed income choices.
Rising bond yields have historically presented attractive entry points to the listed infrastructure asset class, while offering active managers an opportunity to add value through subsector selection.
The global economy is in the midst of a cyclical upswing. We believe this will be generally positive for risk assets and that interest rates and bond yields will move modestly higher.
Cohen & Steers offers two U.S. REIT funds that leverage a unified investment process but also have distinct investment characteristics.
While demand for commercial real estate continues to grow, new supply remains limited. We expect fundamentals will continue to strengthen as the economy improves.
Preferred securities offer unique features and benefits, including high income, good relative value, and catalysts for performance stemming from regulatory reforms.
Amidst a bull market in real estate fundamentals, we believe interest-rate-driven corrections may present buying opportunities for long-term investors.
Preferreds had solid returns in 2014, offering high income rates but avoiding the pressure experienced in high yield. In our view, preferreds appear to continue to offer a good income choice for the months ahead.
For participants in defined contribution plans, diversifying beyond stocks and bonds could take on a new level of importance in the years to come. Liquid real assets, such as real estate and commodities, can be an effective way to achieve this type of diversification
While the 60% stock/40% bond portfolio has long formed the backbone of traditional asset allocation strategies, an investment in real assets may help defend investors in periods when both stocks and bonds underperform.
The 60% stock/40% bond portfolio has long formed the backbone of traditional asset allocation strategies. But contrary to popular belief, stocks and bonds can jointly underperform, and an investment in real assets may help defend investors when this occurs.
The global listed infrastructure universe continues to expand. Here are four recent IPOs that represent intriguing investment themes
Index providers are set to promote real estate to its own sector category in 2016, significantly raising its profile in the market. With real estate forming the 11th sector, here are 11 ways the move could benefit both investors and the industry.
For the active manager, the growing dispersion in the returns of MLPs and other midstream energy companies can open the door to opportunity. But it takes deep fundamental research to uncover today’s market values.
Continued employment growth and lower energy costs are among the factors that could help real estate securities globally.
This Viewpoint positions real assets as a liquid alternative asset class that can provide complementary diversification to a portfolio concentrated in stocks and bonds.
For Instituions/Consultants and Financial Professionals: The market for listed real assets has grown substantially over the past decade, with active managers building a strong track record of adding value for investors.
The steep price declines of many energy commodities have altered the midstream energy investment landscape. Now that rig counts are declining and some basins are becoming less economic to drill, it is more important than ever to understand the fundamentals of master limited partnerships (MLPs).
Real estate securities have staged a substantial recovery since the end of the financial crisis and we expect favorable tailwinds to remain in place as 2015 proceeds.
The decline in oil prices has raised many questions among investors about what it means for the global economy and how different investments might be affected. This report offers our insights on potential scenarios for the oil price cycle and the opportunities and risks in real asset classes.
This Viewpoint addresses how certain types of preferred securities could perform much better than others when interest rates rise.
For Instituions/Consultants:This paper extends our research on liquid real assets to include private real estate, timberland, farmland, natural resources and infrastructure. Based on similar diversification, expected return and inflation-sensitivity characteristics, we see maximum portfolio efficiency in a balanced approach to both listed and private real assets.
For Institutions/Consultants: Over the past decade, investors have allocated to commodities to enhance portfolio diversification, hedge against unexpected inflation or event risk and participate in the secular bull market for basic materials. Framing this rationale, we make the case for an actively managed approach grounded in fundamental research.
For Instituions/Consultants:Active managers of real estate securities have outperformed with remarkable consistency over time, using their understanding of global property markets to identify and capitalize on market inefficiencies.
In the wake of the financial crisis, policymakers redesigned the capital structures of banks to provide a more ready mechanism for bank recapitalization without government bailout funds. “Contingent capital,” or “CoCo” securities are one product of this redesign.
We believe investors should access the midstream energy theme through a total return approach that draws from a broad universe of master limited partnerships, non-U.S. companies and businesses taxed as C Corporations (C Corps). Investors can make these investments directly, or choose from a wide variety of commingled vehicles, as outlined in the...
Learn about this unique asset class, including what makes REITs different from other companies, how the global real estate market has evolved and why different types of commercial properties perform the way they do in various economic conditions.
We believe real estate securities have the potential to meaningfully enhance investor returns when included in a diversified portfolio. This paper examines seven key investment characteristics of the asset class, and how they can help investors.
For Instituions/Consultants: With more institutions investing in infrastructure, we believe the listed market offers an attractive solution to the increasing backlog of capital in the private market, helping investors to achieve their target allocations, optimize their portfolios and access a wide range of global infrastructure opportunities.
This case study explores the shifting drivers of supply and demand that are reshaping the global oil and gas industry. At the sweet spot of these trends are opportunities in the North American midstream energy sector, based on their growth potential and predictable streams of income.
For Instituions/Consultants: This paper frames the fundamental characteristics and opportunities offered by global listed infrastructure. From an allocation perspective, these securities can provide real assets diversification, serve as a carve-out of global equities, or complement existing direct infrastructure investments.
The views and opinions in the preceding commentary are as of the date of publication and are subject to change. This material should not be relied upon as investment advice, does not constitute a recommendation to buy or sell a security or other investment and is not intended to predict or depict performance of any investment.
Please consider the investment objectives, risks, charges and expenses of any Cohen & Steers fund carefully before investing. A summary prospectus and prospectus containing this and other information can be viewed by clicking here or may be obtained by calling 800-330-7348. Please read the prospectus carefully before investing. Cohen & Steers open-end funds are distributed by Cohen & Steers Securities, LLC.
Cohen & Steers open-end funds are distributed by Cohen & Steers Securities, LLC