Welcome to the Versus Capital Blog Covering Real Assets Investments
Institutional investors have gravitated toward real assets investments for decades.
After all, these often-private deals – which tend to benefit from the contractual nature of their cash flows and the durability of those cash flow streams – generally resulted in lower volatility and attractive, equity-like returns. Plus, investors in these assets typically weren’t bothered by huge month-to-month price swings like investments in public securities.
The actual assets themselves were also intriguing. Unlike complicated investments like structured credit or derivatives, one can experience real assets with all five senses.
Whether it’s walking through a quiet timber forest, tasting freshly harvested corn from a Midwest farm, gazing off the top of a hydroelectric dam or touring a modern apartment complex, investing in real assets can offer an immersive experience where the value it offers is plain to see.
These assets are also essential to the functioning of modern society. For example, real assets are:
- The buildings we live and work in.
- The transportation, energy and digital networks that allow goods, services and information to flow throughout an economy.
- The raw materials that fuel society.
When Versus Capital Advisors was founded in 2010, our founders’ goal was to provide a way for financial advisors to provide their clients with access to these types of investments that had previously been difficult to access. To accomplish this, our founders utilized a vehicle that had been around since the early 1990s: the interval fund. The rest is history, and we are proud that over a decade after the inception of our first fund (VCMIX), Versus has succeeded in providing investors with strong risk-adjusted return profiles with low beta and low correlations to mainstream equity and bond indices.
Communication is Paramount
Versus Capital is committed to providing institutional-quality communications, including our in-depth monthly commentaries, our informative video content library and this blog.
In our blog posts, we will be sharing our thoughts on real assets investing, market tailwinds and headwinds, sector-specific updates, and ideas we are incorporating into our portfolios.
We will also be sharing:
- Data, graphs, and other insights to help you make investment decisions
- Interviews with our industry’s thought leaders
- Backstories and book recommendations from our investment team
- Commentary around performance, positioning, and outlook, and more
If you have a specific blog topic or question you would like for us to write about, please feel free to send us a note. We look forward to interacting with you.
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Best wishes always,
The Versus Capital Investment Team
Investing in Real Assets since 2012
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SOME OF THE RISKS OF INVESTING IN THE FUND:
INVESTORS SHOULD CAREFULLY CONSIDER THE FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES BEFORE INVESTING. A PROSPECTUS WITH THIS AND OTHER INFORMATION ABOUT THE FUND MAY BE OBTAINED FROM THE HARRISON STREET PRIVATE WEALTH WEBSITE (harrisonstpw.com). INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. AN INVESTMENT IN THE FUND IS SUBJECT TO A HIGH DEGREE OF RISK. THESE RISKS INCLUDE, BUT ARE NOT LIMITED TO, THOSE OUTLINED BELOW.
- Real assets entail special risks, including environmental problems, adverse changes in local economies, tenant default and regulations associated with infrastructure, timberland, and agriculture/farmland related companies
- The Fund is "non-diversified" under the Investment Company Act of 1940. Changes in the market value of a single holding may cause greater fluctuation in the Fund's net asset value than in a "diversified" fund. The Fund is not intended as a complete investment program but instead as a way to help investors diversify into real assets. Diversification does not ensure a profit or guarantee against a loss.
- A multi-manager strategy involves certain risks. For example, it is possible that some Private Fund managers may take similar market positions, thereby interfering with the Fund’s investment goal. The Fund may borrow as an investment strategy, up to one third of the Fund’s gross asset value. Borrowing presents opportunities to increase the Fund’s return, but potentially increases the losses as well. Because the Private Funds may themselves borrow and incur a higher level of leverage than that which the Fund is permitted, the Fund could be effectively leveraged in an amount far greater than the limit imposed by the Investment Company Act of 1940.
- The adviser, sub-advisers and Private Fund managers manage portfolios for themselves and other clients. A conflict of interest between the Fund and these other parties may arise which could disadvantage the Fund. For example, a suitable but limited investment opportunity might be allocated to another client rather than to the Fund.
- The Fund's investments in Private Funds are priced based on estimates of fair value, which may prove to be inaccurate. Therefore, the value of the Fund's investments will be difficult to ascertain, and the valuations provided in respect of the Fund's Private Funds, Sub-REITs, and other private securities, will likely vary from the amounts the Fund would receive upon withdrawal of its investments. Additionally, given the limited liquidity of the Private Funds, the Fund may not be able to alter its portfolio allocation in sufficient time to respond to any underlying material changes, resulting in substantial losses from risks of Private Funds.
- Fund Holdings and sector allocations are subject to change at any time and should not be considered recommendations to buy or sell any security.
- The Fund does not intend to list its shares on any securities exchange during the offering period, and a secondary market in the shares is not expected to develop. There is no guarantee that shareholders will be able to sell all of their tendered shares during a quarterly repurchase offer. An investment is not suitable for investors that require liquidity, other than through the Fund’s repurchase policy.
- You should not expect to be able to sell your shares other than through the Fund’s repurchase policy, regardless of how the Fund performs.
All information contained herein is for informational purposes only and should not be construed as investment advice. It does not constitute an offer, solicitation or recommendation to purchase any security. Any discussion of general market activity, industry or sector trends, or other broad-based economic, market, political or regulatory conditions should not be construed as research or investment advice.
The information contained herein has been obtained from various sources and is believed to be reliable as of the date of publication, but the accuracy or completeness of the information cannot be guaranteed. The opinions expressed are as of the date of publication and are subject to change without notice.
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