Decades ago, portfolio construction was simply a matter of allocating to stocks and bonds. Today, portfolio construction suggets a need for additional types of investments often referred to as "alternatives," including assets such as real estate, and many others.
Despite what their name may imply, alternative investments are increasingly less of an alternate and more a mainstream option for many investors seeking to expand their reach beyond traditional asset classes.
Use the slider below to adjust assets and see how adding public and private real estate can affect a portfolio compared to traditional asset allocation.Public and Private Real Estate Assets are rebalanced after each year. The results shown are a hypothetical representation based on the variable input values chosen. The information provided is for informational purposes only and does not represent that of the Total Income+ Real Estate Fund. Past performance is no guarantee of future results.
The indices shown are for informational purposes only and are not reflective of any investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. Past performance is no guarantee of future results.
Stocks (S&P 500): An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe (Investopedia). Risks include the dynamic fluctuations of the market and possible loss of principal.
Bonds: Federal Reserve of St. Louis 10-year yields, represents medium term fixed income yields.
Private Real Estate (The NPI Property Index): a quarterly time series composite total rate of return measure of investment performance of a very large pool of individual commercial real estate properties acquired in the private market for investment purposes only. All properties in the NPI have been acquired, at least in part, on behalf of tax-exempt institutional investors – the great majority being pension funds. As such, all properties are held in a fiduciary environment.
NAREIT All Equity Return: The FTSE NAREIT US Real Estate Index Series is designed to present investors with a comprehensive family of REIT performance indexes that span the commercial real estate space across the US economy, offering exposure to all investment and property sectors. The FTSE NAREIT All Equity REITs index contains all tax-qualified REITs with more than 50 percent of total assets in qualifying real estate assets other than mortgages secured by real property that also meet minimum size and liquidity criteria.