Real Assets - Real Expertise™
Real assets—primarily real estate, infrastructure and commodities—are an increasing focus of the world's institutional investors, according to a global survey of 201 organizations conducted by The Economic Intelligence Unit. (Source: EIU 2014)
Against a backdrop of ultra-low interest rates, sluggish growth and ongoing uncertainty, nearly half of these investors have increased their allocations to at least one real asset category in the last three years. More than half expect to increase in one or more categories within the next 18 months. They cite two main drivers for their greater investment: a desire to increase returns and their view of the macroeconomic environment. A need for income is the third major motivation. Other objectives commonly associated with real assets—notably, diversification and protection against possible inflation—are also cited, but rank lower.
Investors are using a variety of vehicles and strategies to get exposure to real assets. Nearly all respondents (96%) invest in real estate, which has long played a role in institutional portfolios. Infrastructure, the newest and fastest-growing category, is owned by 66% of the respondents. Just under one-third of the respondents (29%) invest in commodities. The median allocation to real assets was 11% of the total portfolio, a percentage that will rise further if the respondents maintain their current course. Overall, the survey results signal the continued evolution of real assets as building blocks in institutional portfolios, with many organizations adding staff to support such effort. However, there is an important caveat resulting from the same unusual financial conditions that have been a tailwind for this asset class: A majority of respondents say that a significant rise in interest rates would cause them to rethink some of their allocations to real assets.
Diversified across leading General Partners, geography, property type and industry. Dedicated real assets team has significant global direct and fund investing experience. Hands-on involvement in portfolio construction.
Mutual Fund that is subadvised by Capital Innovations. The link above will take you to the Capital Innovations Mutual Funds website. Capital Innovations Funds are distributed through Ridgeworth Investments.
Capital Innovations Global Agribusiness Strategy
The investment objective seeks capital growth by investing in businesses related to food production that capture value at various points along the food chain. Put simply, agribusiness is the business of feeding the world. It includes the entire spectrum of businesses related to food production – from planting to the distribution and sale of the end product. Not only does this offer promising investment opportunities, our global scope and the wide array of sectors could potentially reduce investors risk from market fluctuations. So, when you invest in our discipline, you may benefit from the growth prospects of the agribusiness.
Capital Innovations Global Listed Infrastructure Strategy
The investment objective of the separate account strategy is to achieve total return through investments in U.S. and non-U.S. equity securities issued by infrastructure companies. Infrastructure companies typically provide the physical framework that society requires to function on a daily basis and are defined as utilities, pipelines, toll roads, airports, railroads, marine ports and telecommunications companies. (According to "The Handbook of Infrastructure Investing.”)
Capital Innovations Master Limited Partnership (MLP) Strategy
The investment objective of the separate account strategy is to provide attractive total return through investments in energy-related master limited partnerships (MLPs) and securities of companies that derive at least 50% of their revenues or operating income from the exploration, production, gathering, transportation, processing, storage, refining, distribution or marketing of natural gas, crude oil and other energy resources. Nearly all other infrastructure is dependent on pipelines and other energy assets to provide essential services to the economy according to "The Handbook of Infrastructure Investing.”
Capital Innovations Global Real Estate Securities Strategy
The investment objective of the strategy is to achieve total return through investment in global real estate equity securities. Global real estate securities are common stocks and other equity securities issued by U.S. and non-U.S. real estate companies, including real estate investment trusts (REITs) and similar REIT- like entities.
Capital Innovations Global Listed Timber Strategy
The investment objective seeks capital growth by investing at least two-thirds of its total assets in a diversified portfolio of the shares of companies operating in the financing, plantation and management of forests and wooded regions and/or the processing, production and distribution of timber and other services and products derived from wood. The investment universe is not restricted to a specific geographical zone.
Capital Innovations Multi-Asset Real Return Strategy
As an innovator in the Multi-Asset Real Return category, Capital Innovations delivered one of the first strategies designed to protect investor's purchasing power by investing in a variety of global Real Asset classes. We pursue real return opportunistically through a flexible, active approach that allows us to choose what we believe are the most appropriate Real Assets based on the current market environment. Our team utilizes an allocation process that includes a long-term outlook focusing on valuation to identify undervalue asset classes. However, we also consider short-term drivers of return including changing economic conditions and rapid swings in investor behavior. Although it cannot assure profit or loss protection, combining focused multi-sector strategies can help deliver a real return, higher yields and diversification benefits. Our Multi-Asset Real Return Strategy is designed to be a core, "one-stop shop", solution combining both income and growth characteristics. Our team's Real Asset focused process seeks out the liquidity of exchange traded opportunities around the world and across asset classes along with dividend income opportunities.