Investment Approach

• The strategy seeks to improve the long-term risk/return profile of a diversified equity portfolio by dampening the sensitivity to material changes in the prevailing inflation regime.
• The strategy is designed as an asset allocation product that invests in the securities of companies that are engaged in activities related to real assets.
• “Real Assets” are assets that have physical properties, such as energy and natural resources, real estate, basic materials, equipment, utilities and infrastructure, and commodities. Such assets may produce cash flows and subsequent valuations that increase when the overall price level in the economy is rising.
• The strategy is expected to respond more favorably to periods of high or rising inflation than the broad equity market does (where broad equity returns are relatively weak) at the cost of less favorable returns during periods of low or falling inflation (where broad equity returns are relatively strong). Thus, as a strategic component of a diversified portfolio, it seeks to dampen the long term volatility of the real (inflation-adjusted) returns of such a portfolio, which is expected to result in a relatively more consistent growth of capital for a long-term investor.