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Institutional Investors turn to real assets

Institutional investor interest in "real assets" is expected to grow in 2010 as demand for greater transparency will enhance the asset class.  A real asset is a tangible asset that has an intrinsic value and includes: land, art, property, equipment, raw materials, infrastructure and intellectual property.    

Institutional investors are expected to explore the role that real assets can play in their portfolios through opportunistic, tactical or strategic investment. While many investment professionals agree that real assets provide diversification benefits, there has been surprisingly little research into the appropriate allocation of real assets in an investment portfolio.   Equally important, investors are likely to emphasize diversification within their alternative investment portfolios, among various established and new types of alternative strategies.