Prudential Investments, the mutual fund family of Prudential Financial, has launched new Real Assets Fund.
Prudential said that the mutual fund will focus on investments with physical properties, such as real estate, metals, fuel, and other commodities as well as offers protection against inflation and rising interest rates.
The asset allocation strategy of the Real Assets Fund will be led by Quantitative Management Associates, which manages nearly $40bn in asset allocation strategies, including real assets.
According to the Prudential, the Real Assets Fund seeks long-term real returns by allocating between the asset classes managed by its institutional asset managers in commodities, utilities, infrastructure, and natural resources, domestic and international REITs, treasury inflation protected securities, in gold-related securities and other defensive investments managed by Quantitative Management Associates’ asset allocation team.
Prudential Investments president Judy Rice said this fund offers investors the potential to lower their overall risk while enhancing the potential for better returns.
"Along with providing a potential hedge against rising interest rates and inflation, this fund helps improve portfolio diversification since the performance of real assets is not tied to traditional stock and bond investments," Rice said.