Real Assets Adviser

June 1, 2018: Vol. 5, Number 6

$0.00 Add To Cart

From the Current Issue

Record global debt gives rise to concern

Global debt reached a record $233 trillion in third quarter 2017, increasing approximately $16.5 trillion for the year through September 2017, according to the Institute of International Finance’s Global Debt Monitor. Debt for all segments — households, nonfinancial corporate, government, financial sector — measured by the report increased for mature and emerging markets globally between fourth quarter 2016 and third quarter 2017.

How advances in transportation are shaping the future of real estate

The historical movement of people and goods has been heavily influenced by advances in transportation. The invention of the steam engine and the expansion of the railroads opened the western United States to mass migration in the 19th century. Supplied with goods carried on those railroads, cities grew in all parts of the country. Many of them soon found density to be a challenge, especially when trying to travel from one part of the city to another. To alleviate this problem, public transit systems were introduced at the turn of the 20th century, and they remain in heavy use today.

The affordable majority: Three misconceptions about investment in affordable housing

The affordable-housing sector presents tremendous opportunity to investors, yet it remains one of the most commonly misunderstood product types. While an increasing amount of institutional and private capital has flowed to the sector over the past several years, a variety of common misconceptions persist. Here is what investors really need to know about affordable housing.

China seeks partners for global initiative: But investors and companies must weigh risks and rewards

By any measure — the amount of steel and concrete, the trillions of dollars of capital to be invested, or its length and breadth — China’s One Belt, One Road infrastructure and real estate initiative is epic. To get a sense of the scale of the projects, a series of maps and infographics is available at Visual Capitalist’s website that detail the initiative’s geographic bounds, the infrastructure needs of the countries the projects span, as well as the capital needs by infrastructure sector.

iRobot: Jon Stein, founder and CEO of the robo-advisory firm Betterment, is striking fear in the heart of a flesh-and-blood industry

Over the years, Jon Stein dreamed of becoming a journalist, a doctor, an art dealer, a rock star and even president of the United States. “I don’t think I’d make a great president,” he says, “but I do think I would be interested in ways to make people’s lives better.” Long before Stein reached age 35, the legal minimum for being elected president, he found his calling — right after he learned some lessons about the private wealth market. After opening several brokerage accounts to invest his money, he was chagrined to find mutual fund companies’ persistent advice was to buy their funds, while brokers beseeched him to trade, trade, trade.

Nontraded investments by the numbers: A performance review of REITs, BDCs and interval funds during 2017

Challenges faced by the nontraded REIT industry over the past market cycle have caused investors and advisers to pause. The structure has so far proven difficult to manage effectively and problematic to transition to the traded markets, not to mention its complexities are tough to understand. Advisers were left explaining and apologizing to clients when liquidity events returned less than their distribution rates in the nontraded REIT and business development company (BDC) markets.

The workforce housing investment opportunity

Cities across the United States are experiencing a housing disconnect. Even as new construction starts have added up to a multifamily building boom, a housing crunch remains in many U.S. cities, with many people unable to find or afford a place to live. A large segment of the apartment-seeking population does not qualify for subsidized housing, but also does not make enough for the market-rate rentals in its cities. The need for inexpensive housing, within close proximity to job centers, that caters to this working population of renters — and the opportunity for investors — is clear, and it is aptly referred to as workforce housing.

Big Oil turns to robots and drones

Boosting efficiency and cutting costs — the oil industry’s favorite buzzwords during the latest downturn — continue to be the key talking points following the crash in oil prices.

Leading indicators: REITs may provide insights into private real estate pricing

Listed real estate stock prices are changing moment by moment, reflecting investors’ perceptions of the value of public real estate companies and updating constantly as new information is absorbed by the market. This leads to much higher pricing volatility than private real estate, and perhaps a tendency to overreact on both the upside and the downside. But this also means listed real estate stocks can be a leading indicator for private real estate values, as private market transactions are slower and private market index information is at least a quarter out of date when published.

A declaration of independence: Suddenly, energy self-sufficiency is within reach

So many of the biggest global and national events are unpredictable. The Soviet Union imploded and the Iron Curtain fell without U.S. intelligence services having a clue it was imminent. Digital technologies were unleashed and decimated dozens of industries, including travel agencies, physical music sales, brick-and-mortar retailers, and print media. Social attitudes and laws pertaining to gay marriage and legalized marijuana changed within a matter of years.

Roundtable: Spoken and written

What people in and around the private investment business are saying about issues ranging from venture capital and Bitcoin bubbles to inflation and U.S. housing policy

Forgot your username or password?