Sustainable Resources
The strategy seeks to provide attractive total return by investing in companies that we believe are best positioned to benefit from the global movement to address climate change and to promote the sustainable use of natural resources.
WHY COHEN & STEERS
Differentiated approach
Holistic universe includes sectors we believe are major beneficiaries and drivers of the shift to a cleaner environment
ESG-focused
ESG risks and opportunities are integrated into the investment processes across the firm; we engage with company boards, management teams and industry organizations to promote ESG best practices
Real asset experts
Proprietary investment process that includes extensive research leveraging as above 55-member investment team that covers real estate, infrastructure, commodities and natural resource equities
WHY SUSTAINABLE RESOURCES
Unique universe
A broad and diverse universe with multiple avenues to find potential winners and deliver alpha
Strong performance
Sustainable resource sectors have generated compelling historical returns
High conviction portfolio construction
Aims to capitalize on cyclical opportunities throughout the secular trend of sustainability, as well as mitigate portfolio risk via diversification through active management
We are in the early stages of a multi-decade opportunity within sustainable investing, in our opinion. In addition, we believe active management can leverage several trends in the marketplace such as a supportive macro backdrop, attractive fundamental dynamics and historically strong returns of sustainable investments relative to broad global equities. Companies focused on sustainability are supported by growing political support, increasing demand from consumers, accelerating technological innovation and growing investor focus.
There has been a shift in priorities for consumers, businesses and governments, with a growing focus on climate change and sustainability. There is a wide variety of listed companies that are positioned to benefit from growing attention to global climate change. A holistic approach to that asset class includes companies from three broad themes: clean energy generation and supply, resource efficiency and sustainable food, water and environmental protection.
FEATURED INSIGHT
ESG’s evolving landscape
Building on COVID lessons in real assets and alternative Income Integration
September 2020 | 1 min
WHY INVEST WITH US
Delivering value to our clients
Cohen & Steers has been offering new and creative real asset and income-oriented investment solutions for both institutional and retail investors for more than 35 years. Research and active portfolio management remain the cornerstones of our investment process, backed by our commitment to deliver superior performance and to provide each client with the highest levels of service.
Cohen & Steers is focused on developments in ESG investing, with ESG factors integrated into every investment strategy, partnerships with ESG research specialists and engagement with company boards, management teams and industry organizations to promote ESG best practices.
PORTFOLIO MANAGEMENT
An experienced team
+2 analysts and associates
The Cohen & Steers Sustainable Resources strategy seeks to provide attractive total return, primarily through capital appreciation, by investing in companies we believe are best positioned to benefit from the global movement to address climate change and to promote the sustainable use of natural resources.
As the focus on global climate change grows, the macro backdrop is becoming increasingly supportive for sustainable investments.
With consumers more focused on reducing the impact of climate change, governments have adopted policies such as tax credits and subsidies that, along with technological innovation, are driving down the cost of sustainable solutions to competitive levels. That has led to greater investor focus, both through company engagement and disclosure, as well as increased investments into sustainable strategies.
• A majority of consumers are willing to change their purchase habits to help reduce negative environmental impact.
• Government stimulus is increasingly focused on sustainable solutions.
• Cost of renewable energy generation is on par with fossil fuel-based energy generation.
• Sustainably invested assets under management have grown significantly.
The strategy offers tailored exposure to sectors and companies we believe will be major beneficiaries of the shift to a cleaner environment.
We believe a holistic approach can help broaden thematic allocations to reflect the various subsectors and themes within the sustainable universe.
• A cleaner environment could be achieved through three key themes: clean energy generation and supply, resource efficiency and sustainable food, water and environmental protection.
• Excludes non-real asset industries that are not core to sustainability theme, such as software.
• Ability to pursue defensiveness or cyclicality, identify potential winners and losers along the value chain and favor geographies where regulatory support and economics are more attractive.
• Differentiated from other sustainable strategies that focus entirely on one sector or theme.
APPROACH
Our investment process
The investment process is designed to build a concentrated portfolio with diversification to various sustainable sectors. The team constantly integrates risk management practices throughout each step of the investment process.
Investment universe
The process begins by including a broad variety of sectors we believe are involved in the global movement to address climate change. That leads to a universe of sectors within themes such as clean energy generation and supply, resource efficiency and sustainable food, water and environmental protection.
Fundamental research
After universe creation, the team evaluates trends at the subsector level. They attempt to capitalize on global investment, product and economic cycles.
Active management
In the security selection and weighting process, relative value and relative growth assessments are made for stocks within the same sub-sector. Securities are weighted by the team’s conviction level, and the subsequent portfolio is intended to be high conviction.
Financial markets distress – Where and when?
June 2023 | 65 minsBob Steers, Executive Chairman of Cohen & Steers, recently had a conversation with Howard Marks, co-chairman of Oaktree Capital Management, for the 2023 Real Estate Luminaries Series, which was hosted by The Steers Center for Global Real Estate at Georgetown University.
Preferred securities: Resetting for a new cycle
Recent bank turbulence and the end of the Fed’s rate-hiking cycle create what we believe may be an exceptional buying opportunity for preferreds.
As private real estate sells off, our conviction in REITs grows
Recent market events, including a downturn in private real estate, give us greater conviction in our analysis showing favorable entry points emerging for listed REITs.
Closed-end fund commentary 1Q 2023
April 2023 | 3 minsClosed-end-funds finished the first quarter up as the Federal Reserve continued to hike interest rates amid a volatile opening to 2023.
Infrastructure investing in the new economic paradigm
The prospect of enduring inflation, anemic global growth and heightened market volatility in 2023 and beyond amplify the importance of a dedicated listed infrastructure allocation.
The benefits of real assets in retirement plans
With target-date funds losing their appeal amid recent declines in both stocks and bonds, many fiduciaries are considering diversification options for their retirement plans. A blend of real assets may offer an attractive way to fill that need.
Need to contact us?
We’d be happy to answer questions about our investment solutions or any corporate-related inquiries.
We consider the information in this communication 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 investment professional with respect to their individual circumstances.
Past performance does not predict future returns. Risks involved with investment, including potential loss of capital, are substantial and should be carefully considered. The views and opinions are as of the date of publication and are subject to change without notice. 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 above will be realized. Active management is not guaranteed to outperform the broader market index.
Important Risk Considerations: Investing involves risk, including entire loss of capital invested. There can be no assurance that the investment strategy will meet its investment objectives. Diversification is not guaranteed to ensure a profit or protect against loss. Since the strategy concentrates its assets in sustainable resource securities, the strategy will be more susceptible to adverse economic or regulatory occurrences affecting sustainable resource companies than an investment company that is not primarily invested in sustainable resource companies. Sustainable resource issuers may be subject to regulation by various governmental authorities and may also be affected by governmental regulation of rates charged to customers, operational or other mishaps, tariffs and changes in tax laws, regulatory policies and accounting standards. Foreign securities involve special risks, including currency fluctuation and lower liquidity.