Real asset exposures can provide three key portfolio benefits: inflation protection, an attractive risk-adjusted return and portfolio level diversification. In the 2017 Real Assets Outlook, Verus highlights the following insights:
- Risk of unexpected inflation shock suggests it is prudent to maintain real asset exposure
- Seek a portfolio of assets with risk exposures beyond inflation
- Within real estate, we recommend a conservative approach to leverage, liquidity, quality and pace of capital deployment
- Our outlook for energy and certain metal commodity prices look favorable beyond 2-3 years
We look forward to discussing this research with you.