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Real asset investments - which are the right ones for your portfolio?

The market offers a broad range of attractive real asset investments as an alternative to traditional investment products.

In periods of low returns and, at the same time, high levels of volatility in financial markets, investments in real assets offer an interesting and often higher-yield alternative to traditional investment products. International markets offer a range of diverse investment objects such as power generation from renewable energy sources, transmission networks, toll roads, special properties and many more. In addition to this, varied forms of financing come into consideration.

 

The individual selection of the right alternatives presents significant challenges for many investors.

When faced with a wide range of often very different alternatives, the challenge is to identify the right investment opportunities and forms of investment for the individual portfolio. In order to do this, the financial opportunities and risks associated with each potential investment project must be evaluated extensively and compared on the basis of pre-defined criteria. However, because real assets typically differ widely at a technical and financial level, this selection process requires both a broad understanding and extensive specialist knowledge.

 

d-fineRAIT supports the investor in the real asset investment life cycle - from selection to ongoing monitoring and through to the exit strategy.

The Real Asset Investment Tool (d-fineRAIT) developed by d-fine supports you in individually evaluating and selecting investment opportunities, as well as in optimising your exit strategy. In addition to this, key figures like KPIs and KRIs can be determined at regular intervals for controlling of running projects.

 

Take advantage of our innovative and scientifically based solution approaches and gain a genuine competitive advantage.

d-fineRAIT uses a simulation-based approach for the future development of income and risk factors. This approach evaluates the yield expectations and risks in an integrated way and thus enables comparison of a diverse range of alternatives for the investor. Alongside the traditional utility theory, we also use insights from behavioural finance namely the Prospect Theory, which was awarded the Nobel Prize for Economics.


Our approach goes well beyond the widespread and simplified methods which continue to be used in the market. These often use only a few unweighted scenarios, which do not enable the investor to make a genuine evaluation and will therefore be inappropriate as a consistent basis for decision making.


Using d-fineRAIT, initial results can be gained quickly through the combination of some key information for specific investments with a set of standard parameters for each type of real asset investment (e.g. a wind park). The investor can then use these results to narrow down the choice. The second step involves inputting detailed project information (e.g. different financing options), which enables the investor to make a well-founded investment decision, consider exit scenarios and continually monitor the investment.

 

For further information, please contact us via phone +49 69 907370 or mail at realassets@d-fine.de, reference "Real Assets".