Tide turning for real assets
Research from Cohen & Steers suggests that the market environment for real assets is undergoing significant change, which may impact on the asset allocation decisions of investors.
Vince Childers, (far left) senior vice president and Real Assets portfolio manager, and Michael Penn, senior vice president and macro strategist at Cohen & Steers, have co-authored the report Reflation Catalysts: Unlocking Value in Real Assets, which looks to factors that will encourage investments into real assets.
Their starting point is that after a period of low inflation and falling interest rates, the assets concerned have been left undervalued. But now an environment of strengthening business, rising wages and a more pro-business mindset among policymakers is set to encourage investments into the asset class.
An indicator of the challenge that has faced investors is that since 1991 listed real assets have averaged returns of some 7.7%, but in the years 2010-2015 averaged just 1%, according to the data put forward in the research.
To read the research click here: Reflation Catalysts – Unlocking Value in Real Assets