Cohen & Steers, Inc. announced today the launch of the Real Assets Compass, an interactive tool focused on real estate allocations designed to help financial advisors and institutional investors improve portfolio risk-return profiles. Using the firm's Capital Market Assumptions for the next 10 years and 30 years of historical data, the Real Assets Compass ("the Compass") compares historical and expected returns and volatility of traditional portfolios of only stocks and bonds with those of a more diversified portfolio of stocks, bonds and listed and private real estate.
Cohen & Steers believes that many investors are under-allocated to real estate despite the well-documented benefits of the asset class, including its strong performance and potential to enhance risk-adjusted returns. These investors include those across a range of profiles, from self-directed investors to those investing with financial advisors or family offices.
Cohen & Steers' analysis, utilized in the Real Assets Compass, suggests that adding real estate to an investor's portfolio of stocks and bonds can improve its total return and risk-reward profile. The Compass can help advisors demonstrate the impacts of adding real estate to a portfolio and address client questions about allocating to real estate. The potential benefits of a real estate allocation apply to an array of investor styles, ranging from those more conservative seeking income or lower risk to those seeking growth or higher returns.
Joe Harvey, Chief Executive Officer & President, said:
"The Real Assets Compass is the latest example of Cohen & Steers' commitment to innovation and providing advisors with the tools necessary to build better portfolios and educate clients around the benefits of private and listed real estate allocations."
The Cohen & Steers Real Assets Compass will enable financial advisors to:
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Build customized investment profiles based on general risk tolerance, investment objective and portfolio size
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View a portfolio allocation with both listed and private real estate based on that profile
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Adjust the total real estate allocation and the mix between listed and private real estate
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Forecast the impact of an allocation to real estate on the risk/return profile of a portfolio through a clear comparison to a traditional stock/bond portfolio
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View resulting 10-year expected portfolio growth in dollars and quantitative performance and risk metrics, as well as the past-30-year return profile
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Download easy-to-understand reports to review with clients
Jon Cheigh, Chief Investment Officer, said:
"We believe real estate should be a strategic, long-term allocation for most investors. Yet too few investors recognize that allocations to real estate can deliver strong absolute and relative returns at lower risk. As a result, we created our Real Estate Advisory Services, which aim to help institutional clients allocate to listed and private real estate based on where we are in the market cycle. These capabilities, along with the Real Assets Compass, will play an instrumental role in Cohen & Steers' work to close the education gap that exists in investors' understanding of the power of real estate allocations."
The launch of the Real Assets Compass follows the appointments of Rich Hill as Head of Real Estate Strategy and Research in September 2022 and Jeff Palma as Head of Multi-Asset Solutions in November 2021, to grow Cohen & Steers' portfolio allocation and research capabilities. The Compass tool can be used by institutional investors in conjunction with the portfolio allocation and real estate strategy insights produced by the firm.
About Cohen & Steers.
Cohen & Steers is a leading global investment manager specializing in real assets and alternative income, including real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and Singapore.