Global direct real estate: a strong diversifier for Sun Life Granite Index+ Target Date Funds

May 01, 2026

Tangible assets that help provide inflation sensitivity and generate rental income alongside long-term capital appreciation.

Tangible assets with inflation protection

Global direct real estate is a private markets investment that provides diversified exposure to income-producing physical properties across global markets. Examples include data centres, logistics and distribution facilities. As a tangible asset class, direct real estate provides investors with exposure to properties that generally can help protect against inflation and generate consistent rental income—two drivers for long-term retirement security.

Income generation and portfolio stability

In an environment of volatile markets, global direct real estate offers meaningful diversification benefits. Direct real estate investments generate income streams that are less correlated with public equity and bond markets, helping to smooth portfolio performance during periods of market turbulence.

The allocation to global direct real estate within Granite Index+ delivers three key advantages:

  • Enhanced income generation from multiple sources beyond traditional stocks and bonds
  • Smoother portfolio performance during market volatility through lower correlation to public markets
  • Built-in inflation protection through tangible assets that tend to appreciate as price levels rise

Why global direct real estate belongs in Granite Index+

As plan members approach their target retirement date, the need for stable, inflation-resistant income becomes more important. Global direct real estate combines appreciation potential and income through steady cash flows. The strategic inclusion of direct real estate within Granite Index+ helps ensure retirement portfolios are grounded in tangible assets with proven resilience across market cycles.