CIO Insights Resilience versus recession Highly energy-efficient “green buildings” may be an area of particular interest, and not just because of current energy price concerns. With regard to listed investment vehicles such as real estate investment funds, investors should however factor in relatively high volatility for the foreseeable future. In particular, investors hope that alternative investments will improve the diversification of their portfolios, deliver reliable and high absolute returns and provide a certain degree of protection against inflation. Alternatives: if you don't like beta, try alpha Market and portfolio implications: o Alternative investments can be a means of achieving yields in excess of market returns o The long-term outlook for the real estate asset class remains positive o Real assets may provide an effective hedge against inflation In Europe, Middle East and Africa as well as in Asia Pacific this material is considered marketing material, but this is not the case in the U.S. No assurance can be given that any forecast or target can be achieved. Forecasts are based on assumptions, estimates, opinions and hypothetical models which may prove to be incorrect. Past performance is not indicative of future returns. Performance refers to a nominal value based on price gains/losses and does not take into account inflation. Inflation will have a negative impact on the purchasing power of this nominal monetary value. Depending on the current level of inflation, this may lead to a real loss in value, even if the nominal performance of the investment is positive. Investments come with risk. The value of an investment can fall as well as rise and you might not get back the amount originally invested at any point in time. Your capital may be at risk. This document was produced in December 2022. 20