The sharp drop off in the markets in 2022 left many investors overinvested according to their allocation mandates in illiquid assets, such as real estate and infrastructure. In a report published in the January issues of Institutional Real Estate Americas, Institutional Real Estate Europe, Institutional Real Estate Asia Pacific, Nick Colley, global portfolio strategist, and Dominic Garcia, chief pension investment strategist, both of CBRE Investment Management, caution against “rushing to rebalance” to fix this perceived problem. “While an overexposure to private assets can be cause for anxiety,” the authors note, “investors should think carefully before rushing to redeem from private-market funds. As ever in the world of investment, what is a risk for some investors is an opportunity for others — in this case, investors with fewer investment constraints. It could be that now is the time to lean in rather than sell off.” To access a pdf of the Sponso
