Existing investment research on gold-related assets has produced conflicting results about the role of gold in institutional portfolios.
Is the combination of real assets in an institutional portfolio meeting the investor’s investment objectives? Investors may arbitrarily group real assets into a single category when constructing their portfolios. However, real assets exhibit diverse features and macroeconomic sensitivities that should be carefully assessed during the portfolio construction process.
PGIM IAS examines the major real asset classes, both public and private, reviews their salient features, and measures their performance since 1996. IAS research highlights a wide diversity in macroeconomic and financial market sensitivities across both real asset classes and subsectors. These findings support a diversified portfolio approach to real asset investing.