The Case For Sustainable Real Assets
Attractive Returns, Diversification, Inflation Protection and Income
Investors are increasingly reacting to the reshaped global financial landscape post the financial crisis and climate change. With a global background of climate change consequences, slower growth, low-interest rates, and low inflation, investors are understanding the clear advantages that ESG-oriented real asset investments can bring to a long-term portfolio, both for those seeking regular stable income and for those seeking to secure long term real returns.
Real assets are tangible and indispensable from an economic perspective. They include timberland, farmland, agriculture, infrastructure, real estate, and renewable energy.
Investing in real assets provides stability and growth to an investment portfolio in a range of market conditions.
Real Asset Growth Potential
Climate change and world population growth, especially a rapidly expanding middle class in emerging markets, will propel ESG-oriented investing and drive increased demand for natural resources, infrastructure, real estate, and renewable energy in the coming decades.
Institutional investors, particularly pension funds and endowments, are capitalizing on these trends through direct investments that are aligned with their long-term objectives.