U.S. REITs are trading towards the middle of their five-year historical range relative to their underlying property assets and nearer to the top relative to cash flows.
For global listed infrastructure mandates, we believe the FTSE Global Core Infrastructure 50/50 Index offers the best representation of the opportunity set and an attractive starting point for actively managed portfolios.
On 9/28/2016, OPEC announced plans to establish a production target to help stabilize the global oil market. While the ongoing recovery in oil fundamentals does not hinge on OPEC, we believe supply cuts would accelerate the rebalancing process, supporting our base case for higher oil prices over the next two years.
As an active commodities manager, the strength of our expertise rests in the depth and rigor of our fundamental investment process. The team conducts bottom-up analysis focusing on supply and demand balances, inventory trends, valuation, market participant composition, technical data and structural curve analysis.
The Cohen & Steers Global Natural Resource Equities strategy has established a three-year track record as of July 2016. Strong stock selection and our unique approach to risk management have been key drivers of our outperformance.
We examine almost a quarter-century of data to show that both listed and private real assets offer similar potential for diversification, expected returns and inflation sensitivity—supporting the case for a balanced approach that diversifies across real asset categories and markets.
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.
The fundamental case for infrastructure is grounded in the inherent characteristics of the asset class—long-lived assets in businesses with high barriers to entry found in monopolistic industries, typically supported by the resilient demand for essential services.
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.
Cohen & Steers has been at the forefront of active investing in preferred securities for more than a decade. For investors seeking the benefits of preferreds, including the potential for high and tax-advantaged income, we offer two strategies: Preferred Securities and Low Duration Preferred Securities.
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.
Trading halts by several U.K. real estate funds have highlighted once again the structural deficiencies of using open-ended vehicles for making direct investments in real estate. Funds that invest in real estate securities may offer a better solution, in our view, providing necessary underlying liquidity.
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.
After an eight-year, 69% decline in the Bloomberg Commodity Total Return Index, we see growing signs that the market is beginning to resolve its oversupply situation, sowing the seeds of a sustainable recovery.
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.
Despite trading near seven-year lows, we expect copper prices to head even lower in the short term. But with copper prices this low, few producers are looking for new supply sources, setting up a potentially massive shortage toward the end of the decade.
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.
With more institutions allocating to infrastructure, we believe the listed market offers a compelling solution to the rising backlog of capital in the private market, aiding investors in achieving their target infrastructure weightings, providing liquidity, and expanding the range of global investment opportunities.
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 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.
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. We make the case for an actively managed approach grounded in fundamental research.
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.
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