“Wealth advisers at some banks are growing cautious about client exposure to more illiquid investments. At UBS Group AG, some advisers have been shaving their exposure to BREIT after the fund’s massive growth made it too big a piece of clients’ savings…” Writes Dawn Lim and John Gittelsohn over at Bloomberg.
- The Times They Are A Changin’ “Now, the money machine is facing its biggest test. Rising interest rates…Even though the BREIT strategy is outperforming stocks — total net returns for its most popular share class were 9.3% in the nine months ended September…the same period last year, when that share class delivered 21.5% returns.”
- Looking Ahead. “Blackstone executives concede that going forward, landlords across the board will find it harder to raise rents for apartments and single-family homes at the same pace as before…But rental rates for warehouses, especially those in urban areas, are poised to continue to show strong growth…”