What are real assets?
A real asset is a tangible asset you can touch—like a bridge, or a building, or gold. These assets have intrinsic value that can be exchanged for other goods and services and in that sense are more “real” than traditional financial investments like equities or bonds.
Three key advantages to investing in real assets
There are several advantages to consider when including real assets in your investment portfolio:
Historically low correlation to other assets:
Real assets have historically had a low correlation to the other assets you are most likely to already hold—stocks and traditional bonds.
Diversify your equity exposure:
Adding real assets to a portfolio is a way to diversify your equity exposure and also obtain access to an often under-represented asset category.
The potential to improve investment outcomes:
Through low historical correlations and improved diversification, strategic exposure to real assets may improve risk-adjusted returns.
How different examples of real assets perform
The power of combining different Real Assets sectors into one solution
A Real Assets portfolio that combines the below sectors, results in the potential for higher inflation sensitivity and returns, as well as improved diversification.
Source: Russell Investments Capital Markets Assumptions. This graphic reflects the behaviour of each sector relative to other real assets sectors.
Real assets solutions
Russell Investments offers several options to access real assets, allowing you to build a customized portfolio that meets your specific needs. For a diversified portfolio, the Real Assets fund is a simple way to gain access to this unique asset class. Alternatively, you can invest separately in the Global Real Estate Pool or the Global Infrastructure Pool.
Our Global Infrastructure Pool and ETF utilize a “Pure-Play” investment philosophy and owns infrastructure assets that provide essential services and operate in monopoly-like competitive positions in stable and regulated industries.
Our Global Real Estate Pool focuses on high quality real estate assets with dominant strategic positions and experienced management teams.
The Russell Investments Real Assets fund and ETF blends multiple strategies in a single multi-asset solution.
All fund names are preceded with "Russell Investments".