A source of portfolio diversification now offering attractive long-term prospects
Real assets (precious metals, industrial metals, energy, etc.) are a source of diversification for a portfolio of financial investments. Their performances are loosely correlated, i.e., with little sensitivity to the performances of the main asset classes (equities, bonds, etc.).
Generally speaking, real assets fare well during inflationary periods, phases of low or negative interest rates, and economic transitions. And, among these assets, precious metals may play a safe haven role during periods of market stress.
For almost 10 years now, OFI Asset Management has developed capabilities on the market for real assets and is quite familiar with the main factors that may affect that market (regulations, macroeconomic, financial and geopolitical developments, the weather, production and storage issues, etc.).
The real-asset team produces research on a regular basis on all markets, through economic surveys, video commentary, and conferences. It is consulted regularly on how the commodity markets work. For example, Benjamin Louvet, commodities manager, stars in a weekly TV and radio programme on BFM Business; he is the go-to expert for Radio Classique, BFM TV, LCI (a television channel), Le Figaro (a daily newspaper) and Challenges (a monthly magazine).
OFI Asset Management has two funds that offer investors simplified access to the market for real assets.