On August 12, Cohen & Steers launched the Cohen & Steers Real Assets Active ETF (CSRA). This actively managed ETF looks to deliver attractive long-term total returns and to maximize real returns during inflationary environments. With an expense ratio of 80 basis points, the fund primarily invests in a variety of global real asset classes.

Key Takeaways

  • The newly launched Cohen & Steers Real Assets Active ETF (CSRA) aims to deliver long-term total returns and maximize real returns during periods of inflation.
  • With an expense ratio of 80 basis points, the fund offers a diversified, all-in-one real asset strategy for investors to manage inflation, diversification, and long-term return potential.
  • Through active management, CSRA invests in a selection of real asset classes across real estate, commodities, natural resources, infrastructure, and precious metals. It may also invest in fixed income securities to manage portfolio volatility.

The Real Asset Allocation Strategy

The fund invests primarily across core real asset classes such as real estate companies and REITs, commodities, natural resources, infrastructure companies, and precious metals. While CSRA is not restricted to specific allocation ranges for each asset class, the fund plans to allocate between 20% and 35% of assets in real estate companies and REITs. The same range will likely be allocated to commodity exposure.

Natural resource and infrastructure companies are both expected to represent allocations between 10% and 20% of total assets. It also plans to invest up to 10% in precious metals and up to 20% of assets in fixed income securities to manage portfolio volatility. CSRA may also participate in private investment in public equities (PIPEs) and in the IPO market.

CSRA’s active approach relies on quantitative and qualitative analysis, aiming to optimize the balance between relative return potential and risk across different asset classes. For each real asset class, the fund seeks to outperform a passive allocation to that asset class over a full market cycle.

The Multi-Asset Advantage

CSRA is designed as a core real asset allocation for investors seeking a multi-asset real return strategy alongside built-in defense against inflation. By blending exposure to a variety of different real asset classes, the fund can potentially offset the erosion of real value that traditional equity and fixed-income securities often face.

“We believe we have entered an era of scarcity shaped by rising demand for energy and materials, deglobalization, and persistent supply constraints. In this environment, investors need more than a short-term inflation hedge,” said Vince Childers, head of real assets multi-strategy at Cohen & Steers, in a press release.

“A thoughtfully blended real assets allocation can offer three important benefits: positive inflation sensitivity, diversification, and long-term total return potential. CSRA brings these complementary exposures together in a single actively managed strategy without having to manage separate allocations across real estate, infrastructure, natural resources and commodities,” he added.

The launch of CSRA expands Cohen & Steers’ actively managed ETF lineup to seven, acting as an all-in-one strategy that complements the firm’s single-category offerings. The fund builds on the success of past launches such as the Cohen & Steers Real Estate Active ETF (CSRE) and the Cohen & Steers Natural Resources Active ETF (CSNR), combining the firm’s expertise across real asset classes into a single ETF.

See More: Real Assets: Powering the Next Wave of Global Growth

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