Real assets span a very broad range of strategies including oil and gas partnerships, real estate commingled vehicles, timber funds, infrastructure funds, and other areas. Importantly, investors must understand the manager’s objective and level of risk entailed with their strategy to make an appropriate assessment of potential success or failure. Certain peer groups in real assets may be very narrow in terms of membership and are therefore less informative than in other areas.
Wilshire places much greater emphasis on the assessment of qualitative variables when evaluating organizations and their respective products. Our manager selection and review process is labor intensive and forward looking, with predominant weighting given to qualitative factors that we believe are supportive of possible manager outperformance in the future.