Liquid Real Assets Strategy
Liquid Real Assets Strategy

Liquid Real Assets Strategy

 
 
 
Summary

The Morgan Stanley Liquid Real Assets Strategy seeks total return, targeted to be in excess of inflation, through capital appreciation and current income. Investments primarily include global listed real estate and infrastructure securities, inflation sensitive equities, inflation-linked fixed income securities and commodity-linked investments.1

 
 
Investment Approach
Philosophy

The investment team believes that investing in a diversified, actively managed portfolio of liquid real assets can provide investors with a measure of protection against rising inflation, help lower the overall volatility of their investment programs, and provide an efficient means to manage cash flows associated with commitments to illiquid real asset funds.

By combining bottom-up security selection by asset class specialists, macroeconomic analysis and expertise in tactical and strategic asset allocation, the team believes that they have the potential to capture attractive relative value opportunities and respond effectively to changes in the macroeconomic climate or expected asset class performance.

 
Differentiators
Cross-Platform Skills And Expertise

The strategy harnesses the collective investing acumen of representatives from MSIM’s Global Listed Real Assets team, Fixed Income team, Global Multi-Asset team and Portfolio Solutions Group.

In aggregate these teams manage over $120 billion in assets2 and have deep expertise across individual liquid real assets classes, in macroeconomic analysis and with strategic and tactical asset allocation through economic cycles.

Diversified Exposure To Drive Real Returns

Investors gain exposure to a diversified set of investment strategies that may help to defend against rising inflation, including listed real estate and infrastructure securities, inflation-linked fixed income securities, inflation sensitive equities and commodity-linked investments.

Active/Dynamic Management Approach

The strategy seeks to outperform equity investments on a total return basis while providing attractive inflation protection benefits.

Efficient Liquidity Management Solutions

The strategy may serve as an efficient means for investors with sizable commitments to illiquid private real asset strategies to gain immediate exposure to the asset classes and manage the associated cash flows.

 
 
 
Investment Process
Bottom-up security selection combined with asset allocation overlay, dynamically managed based on tactical shorter-term views

The strategy’s investment team actively manages the Strategy using a combination of top-down and bottom-up methodologies. When making allocation decisions, the team conducts quantitative and qualitative analysis, aiming to optimize the balance between return potential and risk across the publicly-traded real asset categories.