Cohen & Steers poised to capitalise on demand for inflation protection

Cohen & Steers, a leading global investment manager specialising in real assets and alternative income, has marked the third anniversary of the Cohen & Steers SICAV Diversified Real Assets fund. The fund is a turn-key solution for allocating to real assets, designed to complement traditional equity and fixed income investments.

The Cohen & Steers Diversified Real Assets fund is designed to achieve equity-like total returns and to maximise real returns during inflationary environments through a dynamic blend of investments offering exposure to real assets, including real estate, infrastructure, natural resource equities and commodities. The fund (FX–USD) stands in the top quartile among its Morningstar Europe, Asia and Africa Open-End Other Allocation category peers for the one- and three-year periods ended 31 May 2021.

Large institutional investors are increasingly turning to real assets to mitigate the risks of inflation and achieve better portfolio diversification with financial assets. As a UCITS vehicle offering daily liquidity, the Diversified Real Assets fund enables a wider audience to implement an allocation to real assets, including smaller pension funds and private investors.

Vince Childers, head of real assets multi-strategy and portfolio manager, says: “Real assets have a history of helping portfolios during market conditions that tend to be challenging for both stocks and bonds. Following decades of surprisingly low inflation, the backdrop of increasing inflation risk and multi-decade relative low valuations means real assets currently provide a particularly compelling investment opportunity. We believe the equity market recovery has run ahead of the normalisation of the global economy, while ultra-low interest rates have largely diminished the viability of fixed income in diversifying equity risk—creating an allocation conundrum for investors that real assets can help solve.”