DWS is one of the world's largest and longest tenured managers of Liquid Real Assets, with $25.9 bn in total assets under management (as of December 31, 2019). We invest in real estate securities, infrastructure securities, commodities, and a best-ideas strategy that tactically invests across the liquid real assets spectrum (including natural resources and TIPS).

While each asset class entails a different approach, diligent fundamental research is embedded into our investment process throughout the platform. Our tenured investment teams combine top-down and bottom-up approaches, leveraging the proven process of the broader platform, to create a truly unique asset allocation framework on behalf of our clients.

Overview

DWS is one of the largest managers in Liquid Real Assets $25.9 bn in assets under management as of December 31, 2019. While most of the assets are invested in infrastructure and real estate securities, we also offer investment capabilities in other real assets and commodities, such as gold and precious metals.

Strengths

Experienced Team: About 30 investment specialists with many years of experience in the company and the industry work for the Liquid Real Assets Team.

Multi- Strategy & Global Approach: Strategic allocation and risk management is based on an investment process focusing on active stock selection through regional investment teams with a global top-down approach.

Customization: Different investment solutions via funds, individual mandates or sub-advisory agreements allow for individual preferences.

Investment process

Each asset class entails a specific approach, but all share a common aspect: active stock selection based in fundamental research. A large international portfolio management and analyst team, supported by an integrated research & strategy team, allows us to continually analyze the investment universe with accuracy. We also access the global resources of the Alternatives platform specialists who invest directly in real estate and infrastructure.

Portfolio construction is based on bottom-up selection for which we use our own methodology.

Why liquid real assets? 

  • Diversification potential: withstand changing economic/capital market conditions
  • Competitive risk-return profile: Historically resilient through various market environments
  • Inflation protection: has historically helped maintain purchasing power
Past performance is not indicative of future returns. There is no assurrance that investment objectives can be achieved.

 

A real assets program requires active adjustment as market conditions change

1Diversification neither assures a profit nor guarantees against loss. 2Traditional portfolios of stocks and bonds are exposed to inflation risk. Commodities and TIPS have historically been the most effective inflation hedges in both the short-term and long-term; their relationship with inflation has been statistically strong. Commodity prices are a recognized driver of inflation and TIPS are inflation-linked bonds. Inflation beta measures the responsiveness of nominal returns to inflation. If an asset does not keep pace with rising inflation (exhibit inflation beta >=1), its purchasing power will fall if inflation rises. Therefore, adding assets that exhibit inflation beta to a portfolio may mitigate lost purchasing power in times of rising inflation. Reducing risk comes with a cost – commodities and TIPS are among the lowest expected-return assets

Source: DWS. Past performance is not a guarantee of future results. These are the attributes of an effective hypothetical program and do not directly represent any DWS product. Real return defined as percentage return on an investment that is adjusted for inflation. No assurance can be made that investment objective will be achieved.

Diversification potential is a key benefit1 of real assets investing

1 Diversification neither assures a profit nor guarantees against loss.
Sources: Morningstar and DWS as of December 31, 2018. Asset class representation: global infrastructure, DJ Brookfield Global Infrastructure index; global real estate, FTSE EPRA/NAREIT Developed Index; commodities, Bloomberg Commodity TR Index, TIPS, Barclays U.S. TIPS Index; global equities, MSCI World Index; global fixed income. Barclays Global Aggregate Index; Global Natural Resouces, S&P Global Natural Resources Index. Equity index returns include reinvestment of all distributions. Index returns do not reflect fees or expenses, and it is not possible to invest directly in an index. For index definitions, please refer to imporatnt disclosures at the end of this presentation for further details. Past performance is not indicative of future results.

Real Estate Securities

    We take a global perspective to research and decision making, with the goal of delivering attractive risk-adjusted returns.

  • Fundamental real estate analysis and detailed bottom-up company valuation as well as careful consideration of economic and local property market dynamics
  • A differentiated global portfolio construction process and dynamic pricing model
  • Research by locally-based teams, a large in-house direct property business, and capital markets inputs  
     

Infrastructure Securities

DWS’s dedicated team actively manages portfolios of securities in listed infrastructure companies around the world.

Our investment approach focuses on active stock selection, with an emphasis on underlying infrastructure fundamentals and stock valuation, and a global top-down overlay of strategic allocation and risk management. We focus on pure-play infrastructure companies where company value is largely derived from owning and operating assets that are essential for economic needs.

Commodities

The Commodity Investment team’s active approach is based on fundamental research, taking into account multiple earnings factors. Products and investment solutions are available in:

  • Gold and precious metals
  • Commodity stocks
  • Commodity related securities
     
     

Real Assets

The Real Assets strategy is actively managed, seeking exposure to listed real estate, listed infrastructure, commodity futures and commodity equities, and Treasury Inflation Protected Securities (TIPS), and other asset classes that exhibit real asset characteristics.

  • Custom Quadrant framework provides a macro process that is repeatable and actionable
  • Tilt exposures within asset class as market conditions change
  • Tactical Allocation amongst Real Assets classes is a function of subsector allocation decisions
  • Leverages our expertise and experience in securities stock selection across several underlying real asset strategies

Thought leadership Perspective library

Additional Alternatives

Real Estate

Private Infrastructure

Sustainable Investments

  • $62.4 bn AUM*
  • 350+ dedicated on-the-ground professionals
  • 22 cities worldwide
  • 50+ years fiduciary experience
  • Deep insights from a research-driven approach, along with a bottom-up view from portfolio, asset management and transaction professionals shape decisions in core and non-core real estate and real estate debt.
     

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*As of 12/31/19

  • $14.4 bn AUM*
  • 20+ Year Track Record 
  • A diverse range of strategies across the globe span the risk/return spectrum, including private equity infrastructure and infrastructure debt
  • Our team specializes in transportation, utilities, telecommunications and other critical service sectors.
     

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*As of 12/31/19

  • $0.8 bn AUM*
  • 20+ years of experience in the microfinance space 
  • Our focus is on private debt and equity solutions in the energy, environment, employment/education, housing and financial inclusion sectors.
     

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*As of 12/31/19

Private Equity

  • $1.6 bn AUM*
  • Primary fund of funds, secondary opportunities and direct equity, co-investments globally
  • Private equity, private debt, and infrastructure
     

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*As of 12/31/19

Get in touch

Your Liquid Real Assets specialists

For general contact information, please visit our Contact us page under Profile

edward.o-donnell@dws.com
Edward O’Donnell
Investment Specialist, Americas
matthias.meyer@dws.com
Matthias Meyer
Investment Specialist, Europe & Asia Pacific