In the run-up to real estate’s premiere as the 11th GICS sector, REITs have seen increasing interest from new investors, including generalist fund managers who have long been underweight. As REITs potentially become a larger piece of equity funds, we consider the implications for asset allocations.
U.S. REITs are trading near the top of their five-year historical range relative to their underlying property assets and relative to cash flows.
Real estate securities provide the benefits of investing in commercial property along with the features of publicly traded stocks. This combination results in a set of attributes that we believe make a compelling case for a strategic allocation to the asset class.
Preferred securities offer unique features and benefits, including high income, good relative value, and catalysts for performance stemming from regulatory reforms.
As more investors look to diversify their portfolios with liquid alternatives, we explore how listed real assets have historically helped to mitigate risks of traditional stocks and bonds, improve risk-adjusted returns and hedge against the effects of inflation.
After a seven-year period of strong absolute and relative performance, we believe global real estate securities continue to offer attractive return potential, based on our favorable supply-demand outlook, continued access to capital and reasonable valuations. However, in a maturing cycle, we believe active stock selection is critical.
Valuation and income potential are good places to start when evaluating closed-end funds, but investors who rely on them as an indicator of future performance are likely to be disappointed.
With negative sentiment swirling around the U.K., is it time to be a buyer of Britain? We believe many U.K. REITs are well positioned to weather economic uncertainty, aided by stronger balance sheets, greater focus on core assets and an emphasis on cash flow growth over development.
We expect the global oil surplus to evaporate over the next year, followed by a widening supply gap in 2017 and beyond. In our view, North American shale oil is uniquely positioned to fill that supply shortfall, presenting a compelling opportunity in the midstream energy space for investors able to weather potential near-term volatility.
The U.K.'s historic decision to leave the European Union (EU) has sparked fears about the economic impact on the region and the world. We discuss the investment implications for select Cohen & Steers asset classes, including global real estate securities, global listed infrastructure, commodities and preferred securities.
Cohen & Steers has been at the forefront of active investing in preferred securities for more than a decade. For mutual fund investors seeking the benefits of preferreds, including the potential for high and tax-advantaged income, we offer two products.
Passive index funds may work well for certain investments, but REITs are one area where active managers have historically given investors an advantage. That advantage could add up to a sizeable difference over time, suggesting a place for both active and passive funds in a diversified portfolio.
With many investors feeling the pinch of taxes, municipal bonds aren’t the only option for tax-advantaged income. Preferred securities currently offer among the highest after-tax yields in fixed income—even better than munis, regardless of tax bracket.
MLPs have faced a challenging market environment amid low oil prices and concerns over distribution cuts. But for investors confident in the long-term case for MLPs—namely, predictable cash flows and the continued need for investment in energy infrastructure—we believe current valuations present a compelling long-run opportunity.
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.
In September 2016, real estate will be separated from financials and given its own GICS sector category—significantly raising the profile of an often misunderstood and under-represented asset class. We believe this will drive greater interest in REIT allocations while potentially reducing volatility.
Despite continued volatility, we believe the oil market is already seeing corrective actions needed for a price recovery.
Agricultural commodities remain mired in low prices after years of ideal growing conditions and expanded acreage. But with shifting weather likely to disrupt global production in 2016, we believe a rebound in prices is on the horizon.
Growing worries over bank profitability have pressured bank stocks and credit, including preferred securities. We discuss why the pillars of the preferreds story remain intact—and why we believe market turbulence may present a compelling entry point.
With the high yield market roiled by declining energy prices, many investors are diversifying with preferred securities due to the sector’s strong issuer fundamentals, minimal commodity exposure and attractive yields in the 5–6% range.
Still concerned about REIT performance amid rising interest rates? Just look at the facts: REITs have historically delivered strong returns when the Federal Reserve increases rates, as this typically happens when the economy is getting stronger.
This Viewpoint addresses how certain types of preferred securities may perform much better than others when interest rates rise.
Cohen & Steers offers two U.S. REIT funds that leverage a unified investment process but also have distinct investment characteristics.
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.
Asset managers have increasingly incorporated environmental, social, and governance (ESG) issues into their company analysis. We would like to share our perspectives on these issues as a leading investor in listed real estate companies.
With the Federal Reserve out of stimulus options and fiscal policy shackled by high debt, we believe a massive infrastructure push may be the best way to accelerate the U.S. economy, driving compelling investment opportunities in infrastructure over the coming decade.
Are you a strategic or a tactical investor? If your goals are long term, we believe REITs should be part of your portfolio at all times, through all types of markets— providing valuable diversification and return potential driven by the distinctive characteristics of commercial real estate.
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.
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
The global listed infrastructure universe continues to expand. Here are four recent IPOs that represent intriguing investment themes
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