WHY COHEN & STEERS

Unrivalled experience in liquid real assets from a team that is time-tested over multiple market cycles

Analysis

Proprietary investment process that includes extensive research leveraging a team of over 55 investment professionals that covers real estate, infrastructure, commodities and natural resource equities

Experienced analysts and traders in the key markets, including New York, London and Hong Kong, offer local knowledge and real-time decision-making

WHY REAL ASSETS

Outperformance during inflationary periods

Positive inflation sensitivity may protect against the potentially damaging effects of accelerating inflation on a portfolio concentrated in stocks and bonds

Diversification potential

Distinct performance drivers generally result in differentiated behaviors from equities and fixed income

Historically strong returns with less volatility

Real assets may improve risk-adjusted portfolio returns without sacrificing the potential for equity-like returns over a full market cycle

The Cohen & Steers Real Assets Multi-Strategy seeks to achieve attractive long-term total returns and maximize real returns during inflationary environments. The strategy invests in a diversified portfolio of real assets, defined as investments in real estate companies, commodity futures, natural resource companies, global infrastructure companies, instruments linked to gold and other precious metals, and other permitted investments.

The strategy seeks to generate alpha from both top-down tactical asset allocation and bottom-up sector and security selection. We expect the top-down tactical allocation to contribute 20-25% to the excess returns over a full market cycle, with the remaining 75-80% coming from bottom-up active management at the individual sleeve level.

FEATURED INSIGHT

Real assets: The strategic allocation for inflation defense

Allocating to listed real assets may help investors better manage inflation risks—while also enhancing diversification potential and risk-adjusted returns.

January 2022 | 1 min

WHY INVEST WITH US

Delivering value to our clients

Cohen & Steers has been at the forefront of real assets investing for more than 35 years. Our dedication, combined with our drive for excellence, has led us to build a foundation that is designed to provide consistent outperformance relative to our peers.

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PORTFOLIO MANAGEMENT

An experienced team

Jon Cheigh

Chief Investment Officer

29 years of experience

Vince Childers, CFA

Head of Real Assets Multi-Strategy

24 years of experience

Jeffrey Palma

Head of Multi-Asset Solutions

28 years of experience

Ben Ross

Head of Commodities

30 years of experience

Nick Koutsoftas

Portfolio Manager, Commodities

29 years of experience

Benjamin Morton

Head of Global Infrastructure

26 years of experience

+1 managing analyst and the dedicated investment teams of the underlying components

PORTFOLIO SPECIALIST GROUP

Supporting our investment team and clients

Michelle Butler

Senior Portfolio Specialist

28 years of experience

Investments in real assets have the potential to diversify many of the long-term risks associated with a traditional stock and bond allocation. Real assets offer an exceptionally large investment universe made up of diverse subsectors across many different industry groups. However, this complexity calls for a framework that approaches the various categories of real assets as a unique, but coherent, asset class.

Our research-based framework emphasizes three key criteria that should be met to build a long-term, strategic allocation to real assets:

Diversification

Potential for meaningful diversification benefits, helping to reduce portfolio volatility and improve risk-adjusted return potential

Return potential

Historical ability to deliver attractive full-cycle returns that can potentially improve risk-adjusted portfolio returns without sacrificing growth potential

Inflation sensitivity

High positive inflation sensitivity to help protect against potentially damaging effects of accelerating inflation on a stock/bond portfolio

We believe that a real assets multi-strategy approach should outperform broad equities and bonds over inflationary periods. We also believe that active management is essential and that both top-down tactical allocation and bottom-up sector and security selection can play powerful roles in a real assets portfolio. However, we believe that implementation must be as part of a disciplined risk-management process. Properly managed, we believe real assets can serve as an ideal complement to a portfolio of stocks and bonds.

APPROACH

Our investment process

The strategy utilizes an integrated investment approach, combining top-down tactical asset allocation with bottom-up sector and security selection.

Model analysis
Our top-down capital allocation process utilizes a proprietary quantitative model designed to uncover opportunities in the core asset classes and provide recommendations for optimal asset allocation.

Real Assets

Asset allocation
The strategy utilizes Cohen & Steers' Asset Allocation Strategy Group (ASG) to help determine the optimal mix of assets and conduct optimization analysis to determine asset allocation ranges and targets.

Model adjustment
Debate and discussion among ASG members, along with input from the individual portfolio management teams, provide critical inputs that allow for model adjustments to incorporate house views.

Security selection
The largest component of the strategy’s risk/return budget is bottom-up security selection. This step is done at the individual asset class level and is managed by the portfolio management teams for each of the four core underlying sleeve strategies.

Secular drivers of inflation

Secular drivers of inflation

January 2024 | 4 mins

Recent data indicates a slowing inflation trend, yet risks persist. Secular forces suggest that a prolonged elevated inflation period is underway with the potential for periodic price spikes. Factors driving long-term inflation include commodity underinvestment, tight labor markets, geopolitics, deglobalization and fiscal uncertainty. We see parallels to past inflationary eras, which highlight the difficulty of controlling inflation. While not predicting a return to 9%, the expectation is for a decade of higher-than-accustomed inflation, underscoring the importance of having a real assets allocation.

Opportunities in the era of scarcity

December 2023 | 25 mins

The world is transitioning from an era of commodity abundance to one of undersupply. We believe this shift may result in significant returns for commodities and resource producers over the next decade.

The Israel–Hamas war and the implications for real assets

The Israel–Hamas war and the implications for real assets

October 2023 | 7 mins

Cohen & Steers is closely monitoring developments in the Middle East following the horrific terrorist attack on Israel. We offer a concise examination of the potential impact on real assets and the macroeconomic environment.

The role of real assets in today's investment landscape

The role of real assets in today’s investment landscape

July 2023 | 27 mins

The market is pricing a rapid return to low and stable inflation. Supply-side risks threaten those expectations and heighten the attractiveness of real assets.

The benefits of real assets in retirement plans

The benefits of real assets in retirement plans

July 2023 | 25 mins

With the economic regime shift now underway potentially challenging for typical target-date fund allocations, many fiduciaries are exploring diversification options for retirement plans. Listed real assets may provide an attractive solution.

Defending against sustained inflation with real assets

Defending against sustained inflation with real assets

January 2023 | 6 mins

We believe markets have transitioned to a new regime of slow growth and elevated inflationary risks. It’s an environment we believe warrants diversification and inflation mitigation. And it’s precisely the role that we feel real assets can fulfill. Watch why we think we are in a period of secular stagflation and what role real assets can play.

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We’d be happy to answer questions about our investment solutions or any corporate-related inquiries.