Real Assets

Real assets form the foundation of the portfolio — tangible holdings in physical property, infrastructure, natural resources, and resource development that generate returns through income, appreciation, and the structural scarcity of the underlying asset. This allocation spans a deliberate range: luxury residential development in a supply-constrained coastal market, shallow-bay industrial properties in one of the country's most active logistics corridors, opportunistic real estate equity through institutional managers, and real asset categories beyond traditional real estate — infrastructure, oil and gas, and water.

The industrial positions deserve particular mention. Shallow-bay industrial — smaller-bay, last-mile distribution facilities in high-density markets — has been one of the most durable subsectors in commercial real estate over the past decade, and our two DFW-area positions reflect a conviction that demand from e-commerce logistics and near-shoring will sustain occupancy and rental growth well into the next cycle. Both were acquired at meaningful discounts to replacement cost with existing, credit-worthy tenants in place.

Multifamily, once the anchor of this allocation, remains a competency and an eventual target — but not at current valuations. We have maintained existing residential positions while waiting for the pricing correction and financing environment that will make new acquisitions compelling again. In the interim, the real assets bucket is doing real work across four distinct sub-sectors, each responding to different economic drivers and each providing inflation sensitivity that financial assets cannot replicate.