Capturing Real Asset Exposure via an All-Equity Index

Real assets are defined as a combination of either tangible /physical assets and assets that can generate positive real returns, increase diversification, reduce fund volatility and reduce correlation to the market and economic cycle. They have garnered increasing attention - the primary driver for this is the need to capture characteristics that enhance long-term asset allocation outcomes.

How can real asset exposure be captured? There are two approaches:

(1) Via a composite asset approach

(2) Create a passive real asset index solely utilizing global listed equities

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