Skip to main content
Login to access your documents and resources.
Confirm your location
location select
language select
Real assets

Optimizing pension plan outcomes using public and private real assets

Giant wall

As markets continue to grapple with increased volatility amid surging interest rates and geopolitical tensions, pension plans are re-evaluating portfolios, seeking ways to maximize returns and minimize risk.

In this environment, real assets have demonstrated an ability to provide shelter to investors while improving diversification to portfolios. Real assets may reduce portfolio volatility, enhance returns and generate yield. However, effectively allocating real assets to a portfolio is rarely straightforward. Focusing on farmland, timberland, real estate and infrastructure, we consider three different approaches to real asset portfolio construction:

  • A factors-based approach which helps investors understand the sources of risk and return in a portfolio, revealing insights that help answer the questions “are real assets delivering the expected diversification benefits?”
  • An opportunistic deal driven approach which, given the private nature of many real assets, is reliant upon deal availability to build a portfolio.
  • A hybrid approach which seeks to deliver a strategic, factor-based approach that is flexible enough to allow tactical allocations as new investment opportunities arise.

Related articles
Alternatives The decade ahead for private credit
Private credit has grown dramatically into a $1.4 trillion market since the global financial crisis, but the next 10 years will see even more evolution, say Nuveen CEO Jose Minaya and Churchill Asset Management CEO Ken Kencel.
Infrastructure Investing in listed infrastructure
Investors looking for alternative sources of capital appreciation or income should consider listed infrastructure. Learn more from this educational primer.
Alternatives Mass timber: wood buildings as a climate solution
In this paper, we provide an overview of mass timber markets and examine the potential climate benefits of wood-based construction. We begin with an introduction to mass timber products used in building construction. Next, we provide an overview of mass timber production and consumption, with a focus on North American and the E.U. Finally, we conclude with a discussion of what growing markets for mass timber mean for timberland investors.
Contact us
Our offices
London skyline
201 Bishopsgate, London, United Kingdom
Back to Top