Key Takeaways
- • Nomura Global Listed Real Assets Fund outperformed its primary benchmark, the Bloomberg Global Inflation-Linked Total Return Index Value Hedged USD, during the fourth quarter of 2025 despite broad market volatility.
- • Global markets delivered positive returns in Q4 2025, though expensive valuations and tight credit spreads created headwinds that amplified underperformance in certain segments and periods of macro weakness.
- • The Fund's investment strategy spans listed real asset securities across both equity and fixed income instruments, positioning it to capture inflation-protected returns across diversified asset classes.
- • Corporate actions and operational adjustments by portfolio holdings helped offset valuation and spread-related challenges during the quarter.
Summary
The Nomura Global Listed Real Assets Fund demonstrated relative strength in the fourth quarter of 2025, outperforming its Bloomberg Global Inflation-Linked Total Return Index Value Hedged USD benchmark amid a volatile but ultimately positive quarter for global markets. Despite significant market dislocations throughout the period, the fund's active management approach generated alpha relative to its inflation-linked benchmark, reflecting disciplined security selection and portfolio positioning.
Market conditions in Q4 2025 presented a complex backdrop characterized by conflicting forces. While global markets finished the quarter with positive absolute returns, elevated asset valuations and compressed credit spreads created structural headwinds that constrained performance in various segments. Periods of macroeconomic weakness tested portfolio resilience, particularly where valuation multiples were extended or liquidity conditions tightened.
The fund's performance relative to these challenges underscores the value of flexibility in real asset investing. Portfolio companies executed strategic corporate actions and operational initiatives to mitigate the impact of challenging market conditions, providing a source of outperformance that offset some of the macro and valuation-driven pressures. This dynamic suggests that the fund's managers successfully navigated the tension between expensive overall market valuations and pockets of opportunity within the real assets space.
The Fund's broad mandate—investing in listed real asset securities including both equity and fixed income securities—provided diversification benefits during the quarter's volatility. This dual-asset-class approach positioned the portfolio to participate in multiple transmission mechanisms for inflation protection and real asset exposure, critical features during periods of macroeconomic uncertainty and shifting monetary policy expectations.
Market conditions in Q4 2025 presented a complex backdrop characterized by conflicting forces. While global markets finished the quarter with positive absolute returns, elevated asset valuations and compressed credit spreads created structural headwinds that constrained performance in various segments. Periods of macroeconomic weakness tested portfolio resilience, particularly where valuation multiples were extended or liquidity conditions tightened.
The fund's performance relative to these challenges underscores the value of flexibility in real asset investing. Portfolio companies executed strategic corporate actions and operational initiatives to mitigate the impact of challenging market conditions, providing a source of outperformance that offset some of the macro and valuation-driven pressures. This dynamic suggests that the fund's managers successfully navigated the tension between expensive overall market valuations and pockets of opportunity within the real assets space.
The Fund's broad mandate—investing in listed real asset securities including both equity and fixed income securities—provided diversification benefits during the quarter's volatility. This dual-asset-class approach positioned the portfolio to participate in multiple transmission mechanisms for inflation protection and real asset exposure, critical features during periods of macroeconomic uncertainty and shifting monetary policy expectations.
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