Real Assets

Unlike financial assets such as stocks or bonds that derive their value from a contractual claim, Real Assets derive their value from some physical or tangible characteristics.  Real assets are generally categorized as being either real estate, infrastructure, or raw materials.  Because real asset investments are considered to be backed by a real value, their returns generally include a both a economic value component and an inflation protection component.  As a result they are a particularly attractive asset class in high inflation environments.

Real estate is the most commonly used alternative asset class, while changing government policies around the globe are opening up previously unavailable opportunities in infrastructure, the fastest growing.  Raw materials include precious and industrial metals, energy, agriculture, timber, farmland and other types of commodities. 

Real assets have tended to be one of the largest allocations of endowments globally and we expect that this asset class will continue to be an increasingly important component of our TrueBalance™ portfolios.  Our investment strategies include direct investment in public and private securities including - but not limited to - REITs, commercial mortgages, agricultural land and physical commodity ETFs.  As well we employ external managers to assist in capital deployment in areas such as managed futures and privately financed infrastructure projects.

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