Skip to main content.
Home / Virtus Voices / Duff & Phelps Co-CIO: Real Assets Outlook

Duff & Phelps Co-CIO: Real Assets Outlook

Why Quality, Reliability and Specialization Matter


David Grumhaus - Color Bkgrnd - 400x400

David D. Grumhaus, Jr.
Co-Chief Investment Officer, Senior Portfolio Manager
Duff & Phelps Investment Management

Duff & Phelps Investment Management’s Co-CIO David Grumhaus discusses the impact of COVID-19 on real assets, recent market volatility, and the opportunities and risks in Global Real Estate and Global Listed Infrastructure markets. Recorded June 17, 2020.

Topics discussed:

Global listed real estate - did not display normal defensive characteristics as sub-sectors like retail and lodging, were hit especially hard. The pullback has left REITS at significant discounts to NAV, the majority of the market-cap within REITs is focused on sub-sectors including data centers, cell towers and industrial logistics which are experiencing very strong growth.

 

Global listed infrastructure – offers a mix of protection and cyclical upside to a recovery. Utilities are well insulated from both an economic slowdown and a possible Democratic sweep, but also positioned to capitalize on the growth in clean energy. Both midstream energy and global transportation stocks have seen sharp pull backs, but should benefit if the global economy continues to bounce off the bottom.

Listen Now

IMPORTANT RISK CONSIDERATIONS
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk. Real Estate: The fund may be negatively affected by factors specific to the real estate market, including interest rates, leverage, property, and management. Industry/Sector Concentration: A fund that focuses its investments in a particular industry or sector will be more sensitive to conditions that affect that industry or sector than a non-concentrated fund. Foreign & Emerging Markets: Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk. Income: Income received from the fund may vary widely over the short and long term. Energy Sector Concentration: The fund's investments are concentrated in the energy sector and may present more risks than if the fund were broadly diversified over numerous sectors of the economy. MLPs: Investments in Master Limited Partnerships may be adversely impacted by tax law changes, regulation, or factors affecting underlying assets. Non-Diversified: The fund is non-diversified and may be more susceptible to factors negatively impacting its holdings to the extent that each security represents a larger portion of the fund's assets. Market Volatility: Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on the fund and its investments, including hampering the ability of the fund's portfolio manager(s) to invest the fund's assets as intended. Prospectus: For additional information on risks, please see the fund's prospectus.

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates, or its sub advisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions. 

Investors should consider the investment objectives, risks, charges and expenses of any Virtus Fund carefully before investing. The prospectus and summary prospectus contains this and other information about the fund. Please contact your financial representative, call 800-243-4361 to obtain a current prospectus and/or summary prospectus. You should read the prospectus and/or summary prospectus carefully before you invest or send money.

Not all products or marketing materials are available at all firms.

Not insured by FDIC/NCUSIF or any federal government agency. No bank guarantee. Not a deposit. May lose value.