Periods of elevated inflation have historically created major performance differences across asset classes. Omnigence Asset Management’s “Inflation Performance by Asset Class” briefing examines how equities, bonds, real assets, private markets, commodities, and infrastructure performed during inflationary environments where CPI exceeded 4%.
The paper highlights that real assets such as farmland, timberland, infrastructure, and commodities have historically shown stronger real return characteristics during inflationary periods because their revenues and underlying asset values can re-price alongside inflation. In contrast, long-duration fixed income assets have historically faced pressure as inflation reduces the real value of future cash flows.
The briefing also explores how lower middle market private equity may capture operational improvements and pricing flexibility that differ from large-cap public equity dynamics during inflationary cycles.
Using data and research from sources including NCREIF, Bloomberg, the Federal Reserve, AQR, NBER, and Ibbotson Associates, the report compares estimated real returns across inflationary regimes spanning the 1970s through the post-2020 inflation period.