With stocks and bonds facing the prospect of subdued returns, many fiduciaries of defined contribution (DC) plans are considering diversification options for their investment menu.
A search for real asset funds in Morningstar will find them spread across more than a dozen categories, often ranked against other funds with unrelated objectives and different asset bases.
With prices of U.S. financial assets near all-time highs, we believe real assets offer an investment opportunity in inexpensive assets poised to move higher. We believe the combination of a strengthening economy, rising inflation prospects and attractive relative value signal a potentially compelling opportunity for allocating to real assets.
The spike in Treasury yields after Trump’s win suggests markets are anticipating higher inflation and stronger growth. That’s generally positive for real assets, but there’s a lot we won’t know until we see what he does. Until then, we expect uncertainty to drive more volatility.
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.
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.
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.
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