Real asset exposures can provide three key portfolio benefits: inflation protection, a differentiated source of return, and portfolio level diversification. In the 2016 Real Assets Outlook, Verus highlights the following insights:
- The sharp drawdown and subsequent rebound that occurred across global equity markets in Q1.
- Real estate fundamentals have improved alongside a slow and steady economic recovery, without the overbuilding that is typically seen at this stage of the cycle, although we believe core exposures may currently be more attractive than value-added or opportunistic on a risk-management basis.
- Commodities can still play a role in diversifying portfolios and protecting against unexpected inflation even in a global environment of declining commodity prices and low inflation expectations.
We look forward to discussing this research with you.