Real Asset Strategies offers two liquid real asset solutions in the search for diversification and inflation protection. Each is driven by a model that derives asset allocation, although the manager retains discretion. The strategies are systematic, and objective; that is, there are no subjective inputs or forecasts that drive the model outputs. The strategies rely on several relatively straightforward philosophies:
- High inflation protection and low correlation to a balanced portfolio are highly desirable benefits so we only include assets that we believe will have such attributes.
- Many investors prefer liquid investments.
- Real assets can be volatile and performance can vary between real assets, so fluctuating exposures can help clients improve their returns over static allocations.
RAS – Diversified:
- Objective of maintaining a high level of inflation protection and relatively low correlation to a 60/40 portfolio, diversified across several liquid real assets.
- There are guidelines that ensure a minimum level of exposure to the most important inflation hedging liquid real assets and maximums that help ensure diversification across real assets.
- Utilizes proprietary quantitative models and indicator to ascertain volatility regimes to fluctuate exposures.
- Trades less frequently, and will maintain a more diversified portfolio.
RAS – Focused:
- Objective of a low correlation to a 60/40 portfolio and providing inflation protection, diversified across several liquid real assets.
- The guideline minimums are lower and maximums higher so the portfolio can be quite concentrated at times allowing for the opportunity to add more value.
- Utilizes a proprietary quantitative model to fluctuate exposures.
- Trades more frequently, and can hold high concentrations of selected assets.
Custom Investment Advisory
In addition, RAS will also do customized work on inflation and real assets on a project basis. Perhaps you have a need for a special study concerning your specific inflation exposure or real assets needs. Perhaps you have illiquid assets that you would like to build into a portfolio.
