The Institutional Real Estate Inc Sponsorship brochure, Connected-Investor Focused, We connect people, data and insights, sponsorship, events, IREI Products
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e month of October was not kind to inves- tors. Listed securities across the board were hammered, led by a sell-off in the technology sector, which prompted the Nasdaq to lose 9.2 percent during the month. e broader S&P 500 Index declined 6.8 percent — the worst monthly performance since September 2011 — while the Dow Jones Industrial Average fell 5.1 percent. Real assets were not excluded from investors' concerns about rising interest rates and trade wars. e only sector benchmark to break pos- itive in October was the Dow Jones Precious Metals Index, which posted a total return of 1.30 percent. e big loser was the energy sec- tor; the MSCI World Energy Index recorded a –10.07 percent loss, while the S&P 500 Energy Index posted a –11.26 percent loss. During the past 12-month period, real estate has produced the top mark among real assets, with the NCREIF Open-end Diversified Core Equity Index measuring a total return of 8.68 percent. Taking a long-term view, over the past 10 years, farmland (11.64 percent), REITs (11.36 percent) and energy MLPs (9.20 per- cent) have logged healthy returns, according to their respective indices. All, however, have underperformed the high-flying, post-global financial crisis stock market; over the past decade, the S&P 500 has recorded a total return of 13.24 percent. e good news is the stock market bounced back during the first half of November, posting strong gains. In addition, the economy contin- ues to chug along, boosted by strong job growth and corporate earnings. Plus, the Federal Reserve opted not to raise rates at its November meeting, although it hinted a rate increase was likely in December. Red October for markets and assets BENCHMARKING As of Nov. 6, 2018 Notes: * Total returns for the quarter ended Sept. 30, 2018; Alerian MLP Index data as of Sept. 28 Re a l A s s e t s P e r fo r m a n c e Ta b l e SCORECARD TOTAL RETURNS ASSET CLASS/INDEX October Q3 2018/3 Months YTD 1 Year 3 Year 5 Year 10 Year REAL ESTATE NCREIF Open-end Diversified Core Equity Index — *2.09% 6.48% 8.68% 8.80% 10.72% 5.58% FTSE Nareit All Equity REITs –2.65% *0.50% 1.78% 1.79% 5.89% 8.14% 11.69% MSCI U.S. REIT Index –2.95% –2.59% –0.72% 1.69% 4.66% 7.55% 11.36% INFRASTRUCTURE Dow Jones Brookfield Global Infrastructure Index –1.77% –4.71% 0.01% –1.20% 0.96% 2.46% 7.07% FTSE Global Core Infrastructure Index — –2.40% 0.70% 1.40% 8.10% 7.30% — ENERGY MSCI World Energy Index –10.07% –10.50% –2.81% 3.45% 5.53% –1.32% 4.28% S&P 500 Energy Index –11.26% –11.97% –4.64% 1.77% 2.63% –1.88% 4.74% S&P Global Clean Energy Index –5.43% –10.70% –11.34% –10.38% –3.67% –2.89% –7.86% Alerian MLP Index — 6.60% 5.90% 4.90% 4.40% –2.70% 9.20% COMMODITIES NCREIF Farmland Index — *1.29% 3.78% 6.82% 7.17% 9.89% 11.64% NCREIF Timberland Index — *1.02% 2.44% 4.00% 3.52% 6.00% 4.01% Dow Jones Precious Metals Index 1.30% –13.10% –21.31% –19.16% 7.39% –7.68% –0.63% Dow Jones Commodity Index –1.97% –1.71% –2.30% 0.69% 1.06% –7.03% –2.31% OTHER ASSET CLASSES S&P 500 Index –6.84% –3.25% 3.01% 7.35% 11.52% 11.34% 13.24% MSCI World Equities Index –7.34% –5.67% –2.31% 1.16% 7.91% 6.81% 10.02% Bloomberg Barclays U.S. Aggregate Bond Index –0.79% –0.79% –2.38% –2.05% 1.04% 1.83% 3.94% 57 REALASSETS ADVISER | D E C E M B E R 2 0 1 8