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Real assets are anything that is a tangible resource with an intrinsic value tied to its use. This could include such items as real estate, infrastructure, industrial and precious metals, agricultural goods and other natural resources.
REAL ASSETS • IMPACT INVESTING • PRIVATE MARKETS
These assets can provide significant value to investors’ portfolios through increased diversification and lower risk given their underlying characteristics.
Benefits of an allocation to real assets in a portfolio include:
Asset Types
Infrastructure
Infrastructure is a large asset class with a variety of investments that have the following characteristics:
Sustainability: Citizen Mint believes investing in renewable energy infrastructure is a multi-decade opportunity. The majority of these investments will be in wind and solar projects which will be the greatest source of new power generation as noted in the chart below.
While previously expensive to build, the price for wind-generated energy has dropped 70% per megawatt hour (MWh) and 90% for solar over roughly the last decade, reducing the need for government subsidies while also accelerating plans of large electric utilities to switch from fossil fuels (oil and coal) to renewables.
Real Estate
Real estate is one of the most unique assets classes in the world given the distinctness of each property type. The four main property types for real estate include land, residential, commercial and industrial with numerous sub-categories for each. Characteristics of real estate properties include:
Examples of real estate include land, residential, commercial and industrial.
Commodities
Commodities are raw materials and agriculture products that are traded globally based on set prices given supply versus demand of the product.
The six main categories for commodities are as follows:
Sustainability: Commodities will be a necessary resource to reduce our carbon usage over time. As an example, electric vehicles (EVs) take significant copper, nickel, graphite and other metals to power our new transportation systems such as electric cars and buses.
Natural Resources
Natural Resources: Investments in natural resources encompasses opportunities that in most cases are land or water related. Ultimately, the value of natural resources is less standardized than commodities and is more dependent on how they are processed and marketed.
Examples of natural resources: timberland, farmland & grassland, fisheries.
Summary
We believe that the best opportunities are those that create positive societal or environmental outcomes as well as financial return. To read more about each of these opportunities as well as the benefits and drawbacks, download our free white paper.
This communication and the information contained in this article are provided for general informational purposes only and should neither be construed nor intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice.
Citizen Mint believes real assets can be a great tool for investors to increase portfolio diversification, reduce risk and add growth opportunities to their portfolios.
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*Financial projections or returns displayed on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results.
Disclosures: No communication by Citizen Mint Inc. or any of its affiliates (collectively, “Citizen Mint”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.
Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Citizen Mint believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.
Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Citizen Mint or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.
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