Cohen & Steers, the investment manager that specialises in liquid real assets, has launched its Cohen & Steers Sicav Diversified Real Assets fund.
The company claims the fund will provide investors with a daily-dealing “one-stop” solution for gaining a strategic and managed exposure to multiple categories of real assets.
The fund offers an actively managed portfolio of real assets, pooling the experience Cohen & Steers has built investing across real asset classes for more than 30 years.
The fund invests in securities linked to tangible real assets – including global real estate securities, global listed infrastructure, global natural resource equities and commodities.
It will also invest in gold-related instruments and short-duration fixed income for portfolio diversification and risk management purposes.
According to the investment manager, a diversified blend of real assets has been shown to offer multiple potential benefits to investors, from inflation protection to portfolio diversification, underpinned by the distinct return drivers of real assets relative to stocks and bonds.
Additionally, a diversified blend of real assets has historically delivered equity-like returns over full market cycles, leading to improved risk-adjusted return potential, not simply lower absolute volatility.
With the outlook for bonds turning negative, uncertainty on the horizon for equities, and global inflation signals pointing upwards, Cohen & Steers believes it is especially important for investors to address both under-diversification and the risk of inflation surprises.
Incorporating a diversified real assets allocation may help mitigate these risks, the company added.
The fund is managed by a team led by portfolio manager Vince Childers, who has 18 years of experience and manages more than $1.2bn (£911m) in real assets strategies for the firm.
It is also able to use the investment management and research capabilities of Cohen & Steers’ broader 63-member investment team.
Provider view
Marc Haynes, head of sales and client service, EMEA, at Cohen & Steers UK, said: “By combining multiple real asset classes into a single strategy, we can help smooth the risks of standalone categories. Then, by applying top-down dynamic asset allocation and bottom-up security selection, we have created a turnkey solution for accessing this core asset class.
“We believe the fund is particularly suitable as a performance driver and diversifier and that for many investors it will offer a compelling alternative – or complement – to diversified growth funds, many of which exhibit similar risk exposures to traditional stock/bond portfolios.”
Adviser view
Kusal Ariyawansa, chartered financial planner at Appleton Gerrard, said: “The fund is not different from some investment trusts we already recommend. We would also need a three-year track record to consider a fund for the panel.
“Many prefer simplicity, and deviating from this approach must be justifiable and carefully managed.”
Fees/charges
Annual management charges of 0.45 per cent and ongoing charges capped at 0.55 per cent.
Verdict
The fund will need to have a standout offering to attract advisers, especially when so many of them like to see the long-term performance of a fund.
