Nubin Asset Management: "Hedging Against High Interest Rates and Inflation...Focus on Real Assets"

U.S. Pension Giant Managing $1.4 Trillion

Amid High Rates, Inflation, and Market Volatility

Real Estate Recovery Underway... "Optimal Time to Invest"

During a period of heightened interest rates and inflation, a global asset management firm has suggested that now is an optimal time to invest in 'real assets,' including real estate, infrastructure, and natural capital.

On the 11th, Nubin Asset Management held the "2026 Global Real Asset Market Outlook Press Conference" at the Conrad Hotel in Yeongdeungpo-gu, Seoul, making this announcement. Nubin Asset Management, a global asset management company specializing in real asset investments, is a subsidiary of Teachers Insurance and Annuity Association of America (TIAA) and manages funds from over 1,800 institutions across 42 countries worldwide. As of September last year, total assets under management amounted to 1.4 trillion dollars (approximately 1,885.66 trillion won).

Nuvin Asset Management held the "2026 Global Real Assets Market Outlook Press Conference" on the 11th at the Conrad Hotel in Yeongdeungpo-gu, Seoul. Nuvin

At the event, Abigail Dean, Global Head of Real Asset Strategic Insights at Nubin, said, "Globally, inflation is exceeding target levels and there is a strong likelihood that interest rates will continue to rise," adding, "When inflation and interest rates remain elevated, it becomes crucial for investors to ensure portfolio resilience, and real assets are effective in this regard." As reasons, she pointed out that real assets have a low correlation with stocks and bonds, and that even among real assets themselves, the correlation remains low.

She went on to emphasize that the investment returns from real estate are in a recovery phase. Dean stated, "Global real estate investment returns have remained positive for eight consecutive quarters," further explaining, "Of income return and capital return, capital return declined as real estate prices fell due to rising interest rates after COVID-19. However, throughout that period, real estate income returns were consistently maintained, and in recent quarters, real estate prices have also started to recover. Therefore, going forward, we can expect a strong overall return."

A recovery in real estate transaction volumes was also highlighted, with the U.S. 'healthcare' sector being particularly promising for investment. Chad Phillips, Global Head of Real Estate at Nubin, said, "Transaction volumes have increased by around 24% year-on-year, showing a global recovery," and explained, "Now is approaching the right time to become actively engaged in the market."

Phillips added, "We are especially focused on investing in the healthcare sector. The United States is experiencing ongoing population aging, and the proportion of people aged 75 and older is increasing. There are opportunities to invest in U.S. healthcare, senior housing, and hospital buildings." He continued, "Even for Korean investors, the related costs could be justified when making such investments."

Regarding infrastructure, the built-in inflation hedging characteristic was underscored. Biff Oso, Global Head of Infrastructure Equity at Nubin, commented, "Infrastructure investment generates cash flows, offering structural protection against inflation. Therefore, considering the nature of these assets, they can provide a hedge against inflation arising from conflicts in the Middle East."

He further suggested that the risk factors emerging around the Strait of Hormuz could in fact present investment opportunities for infrastructure. Oso stated, "In Europe, energy security is becoming even more important, with efforts underway to secure energy independence. In this context, new opportunities are arising for infrastructure investment."

Natural capital investments were evaluated as being optimized for risk aversion under conditions of high interest rates and high inflation. Joseph Villani, Senior Portfolio Manager of Farmland at Nubin Natural Capital, said, "Natural capital has no correlation with traditional bond or stock portfolios, and in fact, a positive correlation with inflation. Investing in natural capital offers high risk-adjusted returns, and there is a diverse range of opportunities with varying risk and return levels."

For those seeking lower risk, he recommended investing in arable land and forests in developed countries; for moderate risk, perennial crops in developed countries; and for higher risk—and potentially higher returns—farmland and ecosystem services in emerging countries.

This content was produced with the assistance of AI translation services.