Real assets aim to deliver real returns

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Arata blog provides you with interesting and current information as well as with background aspects of our activities.

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What are Real Assets?

Currently many market participants speak about of real assets. We will give you a brief overview.

What we mean by real assets? Real assets belong to the asset class of “alternative investments” and are real investments in tangible assets, which you can watch and touch.

It is for example real estate and real estate loans or long-term infrastructure investments, energy & natural resources, raw materials, corporates and corporate loans. Such investments are essentially for a relatively low correlation to traditional asset classes such as stocks or bonds. With real assets you can also generate a certain protection against inflation, since in times of high inflation real assets can outperform the conventional asset classes. Real asset are stable in value and generate long-term stable cash flows.

In particular, infrastructure investments and renewable energy usually bring another positive aspect to your portfolio: Sustainability – this issue is becoming increasingly important, especially among European investors.

Why Real Assets?

With high volatility and low interest rates, the interest rises to real assets.

  • Diversified returns
  • Exposure to global growth
  • Low correlations
  • Inflation protection

What are the requirements for Real Assets?

  • Yield
  • Volatillity
  • Overseeable risk
  • Liquidity
  • Sustainability

However, knowledge of alternative assets, and particularly real assets needs to be strengthened considerably. We also support you in this area.


About the author, Heinz Hofstaetter – Over 20 years of international experience in senior management positions in the areas of consulting, banking, finance, asset management, valuation and Real Assets.