Dec
27
2016: ‘New Environment’ for Fund Managers
ByNeed a gift for colleagues? How about treating them to join you at a 2016 RealShare conference? With opportunities across sectors in destinations like Miami, New York and Los Angeles, your team can stay ahead of the competition.
Grinis advises a “twin-track” approach to investment.NEW YORK CITY—The year ahead represents what EY calls a “new environment” for real estate fund managers, a time marked by rising interest rates, potential declines in property values over the long term and the emergence of distressed opportunities. “The cycle is clearly turning, and the successful investment strategies of yesterday may not suit the conditions emerging today,” according to EY’s Global Market Outlook 2016.Whereas in the years following the 2008 capital markets crisis investors could have profited from an “index-style approach,” successful managers in today’s market will need to behave “much more like stock pickers,” according to the EY report. It will require managers “to take a more creative approach to investing, to hone and fine-tune their strategies and to ensure they are identifying the right assets to acquire in the right markets to fit with their risk-reward tolerance.”…
