Cohen & Steers Launches Real Assets Tool Focused on Real Estate
Cohen & Steers, Inc. announced the launch of the Real Assets Compass, an interactive tool focused on real estate allocations aimed at assisting financial advisors and institutional investors in enhancing portfolio risk-return profiles.
Leveraging the firm’s Capital Market Assumptions for the next 10 years and 30 years of historical data, the Real Assets Compass juxtaposes historical and anticipated returns and volatility.
It compares traditional portfolios consisting solely of stocks and bonds with more diversified portfolios incorporating stocks, bonds, and both 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.
The firm’s analysis 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.
“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,” said Jon Cheigh, Cohen & Steers CIO.
