Get (Real) Assets

Mutual Series sees an increasing number of investment opportunities in real assets.

Across the United States, the number of projects involving real assets is increasing. Recent legislation is fostering increased US production capacity for batteries and semiconductors, greening the economy and bringing high-speed internet to rural America. Commodities, metals, industrial equipment and other natural resources are in heavier demand. As a result, the surge in spending on real assets may benefit machinery makers and miners and create new investment opportunities in value-oriented industries.

Legislation supports real asset investment

The Inflation Reduction Act (IRA), Infrastructure Investment and Jobs Act (IIJA) and CHIPS and Science Act are boosting US manufacturing and infrastructure projects. As such, companies are building new US facilities for semiconductors and electronics, clean energy, biomanufacturing and heavy industry. This spending is driving demand for materials such as copper, steel and other metals, rebar, concrete and asphalt, in addition to heavy machinery and other construction site rentals. Generally, value-oriented companies produce these products, and we expect large amounts of spending on new and ongoing projects to support demand.

The Biden administration’s fiscal year 2024 budget proposal sets aside US$70.2 billion for transportation-related infrastructure projects.1 Estimates from the White House propose that spending from the IRA, IIJA and CHIPS and Science Act could total US$3.5 trillion over the next decade.2 We expect these Acts to lead to increased public and private investment in the nation’s infrastructure and manufacturing capacity, and according to the US Census Bureau, US manufacturing investment has grown significantly since the IRA, IIJA, CHIPS and Science Act were passed.

Total US Manufacturing Construction Spending