Of all the variables the new U.S. administration brings for investors, one of the trickiest to plan for is inflation. Inflationary pressures were already building before the election ushered in the prospect of a sweeping agenda of pro-growth fiscal and de-regulatory policies. QMA says a common way to hedge against inflation is to diversify portfolios with exposure to real assets--including real estate, commodities, infrastructure and Treasury inflation protected securities--that tend to perform better during inflationary periods. However, each of these categories reacts very differently depending on what form inflation takes.
In Some Like it Hot, QMA analyzes historic returns during normal and above-average periods of inflation and makes the case for an allocation to real assets.
QMA’s asset allocation capabilities stretch back to 1975 and the company has been managing real assets inside institutional asset allocation portfolios for years. The company introduced a dedicated real assets strategy in 2010.
Read Some like it hot - fiscal policy, inflation and the role of real assets. To talk to a portfolio manager at QMA about real assets, please contact Judi Flynn.
15 March 2017
QMA: Some like it hot - fiscal policy, inflation and the role of real assets