10 FUND IN FOCUS
„ Sustainable real assets companies are at the forefront of net-zero action by investing in green initiatives. Jeremy Anagnos, portfolio manager at CBRE Investment Management
assets’ cashflows and asset values frequently have direct or indirect links to inflation. In both cases, the rising cash flows provide an element of much-need- ed inflation protection for investors. This has enabled listed real assets to outperform global equities during historical periods of above-average inflation 2 . The USD 130trn investment opportunity The Nordea 1 – Global Sustainable Listed Real Assets Fund is a global portfolio of sustainable champions evenly allocated between listed real estate and infrastructure. It is broadly diversified across the main sectors of both asset classes and aims to generate an attractive total return through both capital appreciation and income. 3 In terms of the investment opportunity set, upwards of
deliver a meaningful impact in accelerating the energy transition and improving energy efficiency, their key characteristics make them particularly interesting for investors right now. “Underpinned by essential needs – such as housing, power, transport and communications – real assets provide resilient income streams,” explains Smith. “They frequently exhibit contracted or regulated returns, which pro- vide a strong foundation of stability during economic stress.” Furthermore, the vast majority of real assets have the ability to pass on inflation increases – a fac- tor that is increasingly attractive as inflation around the world reaches worrying levels. Within the real es- tate universe, property values and rents tend to rise with the overall price environment due to rising costs of labour, land and materials, while infrastructure
2 Source: CBRE Investment Management, U.S. CPI, UBS Global Infrastructure & Utilities linked to FTSE Glob- al Core Infrastructure 50/50 Index, FTSE EPRA Nareit Developed Index, MSCI World Index as of 30.06.2022. Trailing 20-years based on average monthly total returns during inflation regimes, annualised. Inflation regimes calculated using the year-on-year change in the U.S. CPI, normalising its history using a z-score, and tracking the three-month moving average of that z-score. The inflation regime is determined by both the level and the change in the indicator, requiring two months in the same cycle in order to confirm a new regime. The perfor- mance represented is historical; past performance is not a reliable indicator of future results and investors may not recover the full amount invested. The value of your investment can go up and down, and you could lose some or all of your invested money. 3 There can be no warranty that an investment objective, targeted returns and results of an investment structure is achieved. The value of your investment can go up and down, and you could lose some or all of your invested money.
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