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.

PORTFOLIO MANAGEMENT

An experienced team

Jon Cheigh

Chief Investment Officer and Head of Global Real Estate

27 years of experience

Vince Childers, CFA

Head of Real Assets Multi-Strategy

23 years of experience

Jeffrey Palma

Head of Multi-Asset Solutions

27 years of experience

Ben Ross

Head of Commodities

29 years of experience

Nick Koutsoftas

Portfolio Manager, Commodities

28 years of experience

Benjamin Morton

Head of Global Infrastructure

25 years of experience

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

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.

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.

A portfolio managers perspective Opportunities in listed infrastructure

ESG: opportunities and challenges within real estate

November 2022 | 6 mins

Environmental, social and governance issues present demonstrable risks and opportunities for real estate. Khalid Husain, Head of ESG, and Jan Willem van Kranenburg, Senior Analyst, discuss how our integrated ESG approach at Cohen & Steers assesses and values these topics as part of our investment approach among different real estate sectors and companies.

Closed-end fund commentary 3Q 2022

October 2022 | 3 mins

Closed-end funds finished the quarter down following persistent inflation and continued talk of monetary policy tightening.

Institutional Investor: The Best Real Estate Returns Come After Recessions

October 2022 | 1 min

Head of Private Real Estate James Corl spoke with Institutional Investor for a feature story on our recent whitepaper and why an optimized real estate portfolio may require access to both listed and private markets.

With Intelligence: Cohen & Steers’ new private RE group eyes discounted retail, office

October 2022 | 1 min

Head of Private Real Estate James Corl spoke to With Intelligence about the Private Real Estate Group’s current market outlook and the opportunities that the team is looking at, including retail, surban office and housing.

Recession and the roadmap for listed and private real estate

September 2022 | 17 mins

We see an economic backdrop that will create an opportunity for strong vintage returns for both listed and private real estate. Both cyclical and secular shifts are likely to create investment opportunities, and we think allocating across both private and listed real estate will be critical.

3 reasons to consider preferreds when rates are rising

September 2022 | 10 mins

Preferred securities have characteristics that can potentially help mitigate the effects of rising interest rates.

Need to contact us?

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