The Strategy provides access to a global portfolio of public companies involved in the production of tangible assets linked to essential natural resources.
- Core strategy generally has 50–70 holdings
- Position weights typically do not exceed 7%
- Strategy maintains relatively moderate tracking risk against our risk-parity allocation framework*
- Constrain sector allocations against Risk Parity custom benchmark to +/-5%
* Many natural resource equity portfolios are built according to market capitalization, often resulting in high weights in energy stocks. By contrast, our risk-parity approach uses quantitative methods designed to equally weight the three core subsectors of the asset class—energy, agribusiness and metals/mining—based on their respective contribution to overall risk. We believe this may help to reduce volatility, while providing a better balance across sectors.
The asset class
The Strategy invests primarily in natural resource stocks that represent ownership interests in companies that produce tangible assets and that have barriers to supply due to capital intensity requirements. The assets are linked to critical, and often depleting, commodity-related resources. The investment universe consists of approximately 200 companies that fall largely into three major sectors:
- Agribusiness—food, machinery, and chemical companies
- Metals & mining—precious and industrial metals stocks
- Energy—oil and natural gas companies
Our investment process
Why invest with us
Founded in 1986, Cohen & Steers has established a strong reputation for investing in global real assets. Our natural resource equities team, which includes a dedicated portfolio manager, an associate portfolio manager and two analysts with an average of 13 years’ experience, draws upon support from the firm’s extensive real assets team and global trading capabilities, with offices in New York, London, Hong Kong and Seattle.
|Christopher Rhine, CFA||Senior Vice President, Portfolio Manager||New York||Bio|
|Jamelah Leddy, CFA||Vice President, Associate Portfolio Manager||Seattle|
|David Fossella, CFA||Research Analyst||New York|
|Celine Fung||Research Analyst||New York|
How to invest »Learn more
The views and opinions in the preceding commentary are subject to change without notice and represents an assessment of the market environment at a specific point in time, should not be relied upon as legal, investment or tax advice and is not intended to predict or depict performance of any investment. We consider the information to be accurate, but we do not represent that it is complete or should be relied upon as the sole source of suitability for investment. Investors should consult their own advisors with respect to their individual circumstances.There is no guarantee that any historical trend illustrated above will be repeated in the future, and there is no way to predict precisely when such a trend will begin. There is no guarantee that a market forecast made in this commentary will be realized.
Please consider the investment objectives, risks, charges and expenses of any U.S. Registered open-end fund carefully before investing. A summary prospectus and prospectus containing this and other information may be obtained by calling 1-800-330-7348 or clicking here. Please read the prospectus carefully before investing.
Risks of Investing in Natural Resource Equities
The market value of securities of natural resource companies may be affected by numerous factors, including events occurring in nature, inflationary pressures and international politics. Because the strategy invests significantly in natural resource companies, there is the risk that the strategy will perform poorly during a downturn in the natural resource sector.
Cohen & Steers open-end funds are distributed by Cohen & Steers Securities, LLC.
Cohen & Steers UK Limited is authorized and regulated by the Financial Conduct Authority (FRN 458459). Cohen & Steers Japan, LLC is a registered financial instruments operator (investment advisory and agency business with the Financial Services Agency of Japan and the Kanto Local Finance Bureau No. 2857) and is a member of the Japan Investment Advisers Association.