TOP 3 REASONS WHY AT LEAST 20% OF EVERY PORTFOLIO SHOULD BE INVESTED IN REAL ASSETS

TOP 3 REASONS WHY AT LEAST 20% OF EVERY PORTFOLIO SHOULD BE INVESTED IN REAL ASSETS (INSTEAD OF ONLY STOCKS, BONDS & CASH)

With the Dow Jones Industrial Average index having exceeded the 20,000 mark, many investors might be inclined to think that Wall Street’s celebratory mood is just getting started. The truth is, that while crossing the 20,000 milestone sounds incredibly meaningful, in reality it is more significant primarily from a numerology perspective, rather than one which is based on actual analysis.

Investors seem to be encouraged by the recent gains in the equity markets and have firmly fixed their gaze upon Washington DC in the hopes of seeing further gains based on the anticipated implementation of financial and regulatory policies, which are deemed by many to be incredibly business-friendly, and will invariably translate into a potential boon to the economy (or most certainly to the financial sector). In reality, however, the legislative process often tends to move slowly which can cast a pall of great uncertainty over the market.

When it comes to uncertainty, it is a phenomenon which is akin to kryptonite for the stock market and in such an environment, investors would be best-served to put their money into other investments which have the potential to provide them with a safe harbor such as the kind provided by real assets. “Real assets are physical assets that have value due to their substance and properties and include precious metals, commodities, real estate, infrastructure, agricultural land, machinery, and oil, etc”.[1] Typically favored by investors who are concerned about inflation, currency prices, or other macroeconomic factors, real assets are a great hedge against uncertainty and are therefore a superb alternative to the stock market.

 Below are three very compelling reasons why we believe that at least 20% of every portfolio should be invested in real assets:

1)    Predictable cash flows with more stability: Real estate and other real assets which produce income can serve as a valuable substitute for investors who have historically turned to fixed income instruments as a means of generating cash flow from their investments. With the continuing urbanization trend in major cities throughout the US and world capitals alike, income-generating real estate investments can offer the long-term investor a sound alternative to bonds by allowing them to take advantage of capital appreciation as well as steady cash flows throughout the holding period. In light of the low-yielding returns from Treasury bonds and Euro zone bonds, as well as other instruments, investors worldwide are on the hunt for investments which yield higher cash-on-cash returns without having to increase their risk tolerance. Given the characteristics of real assets, they can offer investors the safe harbor and performance which they are seeking.

2)    Less expensive alternative to stocks with greater chance of relative outperformance: In a recent research note providing the firm’s outlook for 2017, the Chief Investment Strategist at Bank of America Merrill Lynch, Michael Hartnett, urged clients to ‘rotate out of stocks and bonds to “real” assets’ [2] with one of the most compelling reasons being that the ‘relative price of all real assets (including commodities), against financial assets, is at its lowest since 1926’[3]. This relatively lower cost makes real assets a very attractive investment alternative as compared with stocks or bonds and one which is well-timed in the view of many professional investment firms such as Credit Suisse and others who believe that US stocks are ‘highly overvalued’.[4]

(Source: https://Deutsche Asset Management fundsus.deutscheam.com/EN/_img/content/accelerating_chart1.jpg)

3)    Hedge against inflation: Here in the US as well as in developed nations throughout the world, inflationary pressures seem to be on the rise. Factors such as rising interest rates due to monetary policies being implemented by the Federal Reserve and global central banks, rising food and energy costs, rising wages and slowing global trade are all components of an inflationary environment which will put downward pressure on stocks but which will be advantageous for the real assets investor.

(Source: https://Deutsche Asset Management https://fundsus.deutscheam.com/EN/_img/content/inflation-chart2.jpg)

While it’s true that no one has a crystal ball into the future, the presence of certain market signals should alert the wise and savvy investor that they would be well-served to take notice, not only so that they can mitigate financial risk, but at the same time, to reallocate holdings in their portfolio in order to benefit from the risk factors in the investment realm, especially during periods of great economic uncertainty such as that which currently exists on a worldwide basis.

About RealAssets™

RealAssets™ is a platform for investing in investment grade real estate. Founded by a team of experienced and proven institutional real estate investors with over 150 years of cumulative high-level investment management and international real estate experience spanning the US, Europe, and India, RealAssets™ allows a diverse array of investors to participate in advantageous and highly sought after investment grade real estate investments which were historically reserved for large institutions, etc. The RealAssets™ platform is secure and intuitive with a user-friendly interface and with sophisticated technological advancements which provide real-time information and tools to investors. www.realassets.com

Contacts

Suresh Nichani - CEO, RealAssets™ Corporation

Email: s.nichani@realassets.com

Phone: +1.212.873-1194

Disclaimer: This informational document is based on data publicly available or from sources considered reliable. RealAssets™ does not represent that the information contained herein is accurate or complete and hence, it should not be relied upon as such. This informational document is subject to change without any prior notice. Opinions expressed herein are our current opinions as on the date of this report. Nothing in this informational document constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The reader assumes the entire risk of any use made of this informational document. RealAssets™ especially states that it has no financial liability whatsoever to the readers of this informational document. This informational document is solely intended for the personal information of the authorized recipient. This informational document should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person, or published or copied, in whole or in part, for any reason.

[1] http://www.investopedia.com/terms/r/realasset.asp

[2] http://www.marketwatch.com/story/bank-of-america-tells-stock-investors-to-get-real-as-inflation-makes-its-comeback-2016-10-17

[3] http://www.theage.com.au/business/markets/boaml-says-its-time-to-buy-real-assets-instead-of-stocks-bonds-20161018-gs50vp.html

[4] http://www.valuewalk.com/2017/02/trump-stock-crash/

RealAssets Press Release April 2017

NEW YORK BASED FINTECH STARTUP, REALASSETS™, THE FIRST TECHNOLOGY-DRIVEN U.S. REAL ESTATE MULTI-MANAGER, REINVENTS HOW MONEY FLOWS INTO INVESTMENT GRADE REAL ESTATE

●      RealAssets™ will curate “best-in-class” operators and funds through its robust investment process

●      The RealAssets™ platform will deliver superior returns to its investors by reducing layers and friction costs

New York City, NY- April 13th, 2017

RealAssets™ (www.realassets.com), an independent spinoff from RootCorp and Cordea Nichani Fund Managers (an international joint venture originally formed between Nichani Group and Savills), is a fintech startup which has established itself as the first technology-driven real estate multi-manager in the United States. RealAssets.com is geared toward high net-worth individuals (HNI’s), family offices and small institutional investors.  Investors who use the RealAssets™ platform will have access to a robust deal pipeline featuring exemplary “investment grade” real estate investments which have traditionally only been accessible to large institutions (e.g., insurance companies, fund managers, pension funds, private equity firms, REITs, etc.). Through its unique investment process, RealAssets™ offers its users the opportunity to invest in cash flow generating real estate (assets which appreciate in value), thus enabling investors to invest with a margin of safety.

As a full service technology savvy investment management company, the platform will make it possible for investors to own “real assets” without the hassle of day-to-day management. Through the use of proprietary technological architectures and methods, decisions are driven by analytics and research to ensure the highest caliber of investment offerings. These same technological methods make it possible for the platform to disintermediate, reduce layers and friction costs, thus making the investment process much more efficient and advantageous for investors.

The investment team at RealAssets™ will follow an institutional strength investment process coupled with a “best-in-class” approach when it comes to curating all aspects of the deals which are presented to investors on the platform. This “best-in-class” approach will be applied not only to the properties themselves but also to, operators, third party fund managers and developers. The RealAssets™ team prides itself on partnering only with top real estate sponsors, operators and fund professionals at every level who have verifiable track records. On behalf of investors, the platform will take equity, preferred equity and mezzanine debt positions in investment grade RealAssets™ with deal sizes between $10MM and $40MM.

“Globally, investors are seeking alternative investments due to the underperformance of equities and negative fixed income returns, and for many of these investors, investment grade real estate is the answer”, said Suresh Nichani, CEO of RealAssets™. “Investors are seeking diversification into alternative investments due to the inherent volatility of equities and due to the fact that real assets can provide consistent cash-flows and a natural inflation hedge.  For many of these investors, investment grade real estate is the answer”, said Suresh Nichani, CEO of RealAssets™. “Our internal research findings are bolstered by general trends in the market which show that institutional investors are shifting increasingly into less liquid assets in order to generate returns and income. The RealAssets™ platform will provide these investors with a multitude of opportunities to deploy their investment capital in order to diversify their real estate portfolios in order to maximize returns”, added Nichani.

During its initial roll-out planned for April 2017, the RealAssets™ team seeks to attract accredited and vetted real estate investors by offering them the opportunity to invest primarily in multi-family residential communities, with opportunities to invest in student housing, office buildings, and hotels to follow on shortly. Eventually the platform seeks to widen its investor audience to include small and large institutions alike. The expansion phase in 2018 will also broaden the range of investments offered on the platform to include other cash flow-generating assets such as storage, retail, malls, mixed-use buildings and also real estate funds.

Nichani and the RealAssets™ team are very excited about this new offering - a platform which they consider to be a real game-changer in terms of widening the ecosystem for investment grade real estate investments. “By bringing investors together, the RealAssets™ Investment Platform will provide a continuous, scalable deal flow of carefully curated, vetted investments”, said Nichani.

About RealAssets™

RealAssets™ is a platform for investing in investment grade real estate. Founded by a team of experienced and proven institutional real estate investors with over 150 years of cumulative high-level investment management and international real estate experience spanning the US, Europe, and India, RealAssets™ allows a diverse array of investors to participate in advantageous and highly sought after investment grade real estate investments which were historically reserved for large institutions, etc. The RealAssets™ platform is secure and intuitive with a user-friendly interface and with sophisticated technological advancements which provide real-time information and tools to investors. www.realassets.com

RootCorp LLC, a 100% owned subsidiary, serves as the investment manager and will be using tried and true investment management methods and processes which have been cultivated from real estate deals executed by the team across the globe. www.rootcorp.com

 

Contacts

Suresh Nichani

CEO, RealAssets Corporation

Email: s.nichani@realassets.com

Phone: +1.212.873-1194