Podcast series Clarity on Real Assets: Is Infrastructure really inflation proof?
Inflation – last year 2.7% in Europe – creeping up may not have kept you awake last year as the market believed it was transitory. Now it's 8.1% ; as an investor it’s a concern that we can’t ignore.
As investors we’re looking for inflation protection.
Infra is mentioned as providing inflation protection, but let’s dig into that – we can see it doing well while the inflation concerns are here – one of the few strategies up while the market is down.
In this podcast we will tackle the question: how inflation proof is Infrastructure really and where do we, as investors, need to look out for?
Real Assets video
With Real Assets, Kempen brings investments to sustainable and reliable projects in infrastructure, land and real estate. Watch our video and experience how we can bring transparency to this opaque asset class.
Future proof investingInvesting can seem like an abstract affair – to many people, stocks and shares represent little more than names on a computer screen, rising or falling at the whim of the markets.
But real assets are different. As the name suggests, they’re real, physical entities – things that you can see, touch, use and enjoy. Like real estate – not just run-of-the-mill office blocks, but major shopping centres that everyone’s heard of, such as Westfield in London. Infrastructure – think about renewable power plants that are helping the world meet its carbon emission reduction targets. And farmland, which grows the food we all eat.
Real assets not only somehow feel different from an investor’s perspective – they also act differently to stocks and bonds in an investment context. That means they can provide big benefits to a broad investment portfolio: their returns don’t tend to move in line with those of stocks and bonds, so an allocation to real assets can be a great way of reducing overall portfolio risk.
Podcast series Clarity on Real Assets: Impact climate risk on Real Estate valuation
Floodings, wildfires, draught, record high temperatures. Climate change has had a huge impact on different communities around the world the past years. Today we will discuss how extreme weather events have significant effect on the valuation of real estate and how this evolves over time.
In this podcast Lucas Vuurmans, Senior Quantitative Portfolio manager Real Estate Kempen Capital Management and Sergey Obolensky, Executive Sales director at Munich Re, discuss climate risk in Real Estate. Questions they will answer are: How do extreme weather conditions affect real estate valuations? Why do we collect data on extreme weather events? And how do we translate this data into relevant information to draw conclusions from in our daily portfolio management decisions?
The influence of climate risk on real estate valuation
There can be no mistaking the effects that climate change has had on communities around the world in 2021. There are plenty of examples. Heavy rainfall has caused widespread flooding and landslides in The Netherlands, Australia and wide tracts of the US. There have been ferocious wildfires and droughts in California, Greece and Australia, while the hottest-ever temperature in Europe was recorded in August: 48.8°C in Sicily. We believe climate risks are misunderstood and mispriced by participants in real estate markets.
Read our white paper
To find out more about the challenges involved in making sense of ESG data and how we overcome them in our real assets investment process at Kempen, please download our white paper.