Global Real Assets – a new asset class is forming
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Anticipated allocation to real assets in an institutional portfolio by 2018 *
Shipping/Transport/Other 2% Timber/Agriculture 2%
Commodities 4%
Real assets 25%
Other assets 75%
Infrastructure 7%
Real Estate 10%
* Opinions expressed are those of the authors and not necessarily those of JPMAM or its affiliates.
In short, global economic trends are driving a dramatic transformation in portfolio allocation. To make the most of this shift in thinking, investors need to choose their asset managers carefully. As more institutional money flows into real assets, it is vital to seek out those investment groups that have specific experience within the different sub-sectors and the necessary local networks of relationships and joint-venture partnerships to source and secure the most attractive assets. Real assets are set to be the most important new investment class of the 21st century – be sure your pension fund is ready. Please note that there are risks, including real estate, commodity, emerging market and currency risks, associated with investments in global ‘real assets’ which prospective investors should familiarise themselves with. The opinions expressed here are the authors’ and should not be relied upon to support an investment decision.
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