The Strategy seeks to achieve a positive real return over US inflation while targeting a risk level similar to that of longer-dated US Treasury Inflation-Protected Securities.
The Strategy is designed to offer a diversified exposure to commodities, global natural resource and infrastructure equities, real estate via US REITs, and US inflation-linked bonds. It employs a strategic asset allocation process to build a portfolio of carefully selected indexed components and provides a broad, cost-effective exposure to real assets.
Given its multi-asset-class approach, the Strategy offers three key benefits:
Diversification Real assets have historically demonstrated only a modest correlation with both traditional equities and bonds, as well as with each other, over a market cycle.
Income Many real assets are income-producing, typically offering an attractive yield and providing an additional source of income.
Potentially Attractive Returns Allocating to a diversified group of real assets can potentially provide additional returns relative to traditional assets.