TAILIEUCHUNG - Real assets: A sought-after investment class in times of crisis

Diversification of the portfolio can only reduce the so-called non-systematic risk, however. The systematic risk, . the interdependence of returns on changes in the overall market and/or shocks cannot be eliminated. For instance, the returns on equities and investments in specific real assets are necessarily positively correlated by the underlying economic determinants. The return on an invest- ment in equities depends . on company profits and therefore also on growth. The return on investments in ships is dependent on inter alia, global economic growth and the increase in world trade. Depending on the target market of the investment, a positive correlation. | Deutsche Bank Current Issues . Global financial market June 6 2012 Authors Josef Auer 49 69 910-31878 Eric Heymann 49 69 910-31730 Jochen Mobert 49 69 910-31727 Claire Schaffnit-Chatterjee 49 69 910-31821 Antje Stobbe 49 69 910-31847 Editor Antje Stobbe Deutsche Bank AG DB Research Frankfurt am Main Germany E-mail Fax 49 69 910-31877 DB Research Management Ralf Hoffmann Bernhard Speyer Real assets A sought-after investment class in times of crisis Real assets are currently very much in demand by investors. The major drivers of this are the high volatility in the financial markets since the start of the global financial crisis and the concern many investors have about high rates of inflation. Empirical studies show that real assets can actually provide effective inflation protection. For many investors real estate is the most important real asset investment. Whereas numerous real estate markets in Europe and the USA are still suffering the effects of overheating rising prices are now evident in the German residential property market. The environment for commercial property also remains attractive. Long-term trends such as the growth of the global population increasing urbanisation and the growing economic importance of emerging markets favour investments in real assets such as infrastructure or agricultural land. Growth in the volume of ships and aircraft is benefitting from growing world trade and increasing international mobility. Low margins . in aviation are a risk factor in this segment however. Numerous investment options in renewable energies. The energy transition in Germany as well as the increasing use of renewable energy sources in other countries is creating new prospects for investors in real assets. Although investors have been able to gain considerable experience of . onshore wind biomass and

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