MIS Real Assets Strategy

MIS Real Assets

Objective

The Westwood MIS Real Assets Strategy seeks to generate capital appreciation and consistent income by investing in publicly traded equity securities of companies in the energy, real estate, infrastructure and natural resources industries.

Strategy Overview

The strategy tracks a custom index of publicly traded equity securities of companies in four clearly defined pillars of real assets: Energy, Real Estate, Infrastructure and Natural Resources.
Each company within the pillars is carefully screened to reflect true economic activity. The strategy uses a rules-based process to avoid overlap, misclassifications and unintended equity beta.
The strategy uses a risk-weighted allocation framework to balance volatility across the pillars, which provides more stable returns and stronger diversification benefits.

Vehicles

Separate Account
Commingled Trust

Real Assets Pillars

Real assets are tangible, physical assets that derive their value from intrinsic characteristics and utility, rather than a contractual claim (like equities or debt). The strategy invests in companies that own, operate or develop these assets. Defining the industries and sub-asset classes is critical to achieving the desired volatility, diversification and inflation characteristics.

Strategy Features and Potential Benefits

Better Defined Pillars Provide Clarity to Exposure – We believe many ETFs and benchmarks misclassify telecom or commodity-linked pipelines as infrastructure. Our methodology defines pillars and uses financial data to identify companies, to avoid these pitfalls.
Reduced Drawdowns May Create Better Risk-Adjusted Returns – Historical results show consistent outperformance versus traditional liquid real asset and infrastructure benchmarks.
All-Equity Portfolio Reduces Unintended Exposure – The strategy invests only in equity securities of companies involved in real assets and does not invest in TIPs or commodities, which have different investment characteristics.
Customizable for Unique Client Circumstances – The strategy is modular, designed to be adaptable and customizable to specific client circumstances, to fit into existing models or completion portfolios.

Who This Strategy Serves

Institutions who seek liquidity and transparency from their real assets exposure
Investors who are dissatisfied with current high-cost strategies that don’t look and act like real assets
Investors seeking downside protection, diversification and diminished drawdowns
Institutional investors seeking clearly defined, precise portfolio building blocks for real asset exposure
Clients with private asset exposure who need greater liquidity or public market flexibility to diversify a portfolio