For Institutions/Consultants: 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.
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.
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.
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.
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.
Many U.S. REITs can currently be purchased at prices that are near their underlying asset values compared with the higher premiums typically seen in the past four years.
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.
While demand for commercial real estate continues to grow, new supply remains limited. We expect fundamentals will continue to strengthen as the economy improves.
Amidst a challenging environment for commodities and natural resource equities, portfolio manager Vince Childers discusses the landscape for real assets and what needs to happen for a recovery.
For Institutions/Consultants: 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.
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.
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.
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 Institutions/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.
For Institutions/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 Institutions/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.
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 Institutions/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