Defense in an uncertain market

The rise and fall of interest rates recently have everyone wondering what is going to happen and how do I prepare and protect my investments in the long run?

Moriah Thomas Parker, senior associate – portfolio management and investor relations at FCP, states there are three key takeaways to understanding how to position a portfolio for the current market: a balanced investment approach, manager selection and understanding the effects of ESG currently impacting the real estate industry.

“Durable defensive cash flow is very key when considering a diversified portfolio,” says Thomas Parker. “At FCP we believe that the durable cash flow comes from a very specific sector: Moderate income multifamily housing. This sector can differ as you look at various markets, however, typically it is defined as 30–80 percent of area medium income. Due to the lack of supply in this particular sector, we believe it is a defensive strategy given the lack of supply, as well as the q