Money managers in 2023 recovered just over half of the $9 trillion in institutional assets they lost the year before, even as lingering economic and political uncertainties kept a lot of money sidelined, including a record $6 trillion parked in money market funds alone. When that money comes off the sidelines, managers of active fixed-income and alternatives strategies will likely continue picking up market share at the expense of equity managers, analysts said. Pensions & Investments’ 2023 survey of the largest money managers showed institutional assets for 411 managers around the globe rising 9.7%, or $4.89 trillion, to $55.23 trillion as of Dec. 31 — roughly half the prior year’s $9.32 trillion plunge. Total worldwide assets for those managers rose 11.2%, or $8.7 trillion, from the year before to $86.18 trillion. Despite a start to the year dominated by recession fears and some notable bank failures, managers — still smarting from the U.S. rate hiking cycle that pummeled stock and bond markets alike in 2022 — mostly saw a proverbial glass that was half full rather than half empty as 2023 drew to a close. Optimism was in short supply as the year began, but then chipmaker Nvidia announced impressive results in May and suddenly everyone was talking about artificial intelligence and who the beneficiaries would be, said Paula Robinson, Willis Towers Watson’s head of global equity manager research. That spike in market enthusiasm helped levitate beta returns for the year. Benchmark indexes for U.S. and global ex-U.S. stocks ended 2023 up roughly 26% and 18% respectively, while U.S. and global ex-U.S. bond indexes gained roughly 5.6% apiece. The only major asset class not invited to the party was real estate, with the NCREIF Fund index for private real estate plunging 12.7% for the year. Last year’s AI-powered rally, meanwhile, gave already-dominant U.S. megacap growth stocks added momentum, with the so-called Magnificent Seven — Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla — accounting at times for close to 30% of the S&P 500 index.
Really? In my opinion the interest rates being paid by private borrowers and way under what they should be to justify the added risk over just buying a tbill. Funds buying a lots of this debt are asleep at the wheel. I looked at the actively managed bond funds available in my 401k: 4 or 5 options ranging from +3% to -2% over the last year, with high fees to boot. I signed up for the brokerage option at extra cost, just so I can not buy my money in the hands of these idiot bond managers. How the hell to you loss money in a bond fund that's supposed to be of adequate quality for a 401k when the feds are paying 5%? What they hell did they do, load up on 0% bonds and then sell it off at a loss?
Money managers... Let me tell you a thing or two about money managers... They are pointless, useless, and will grant you the world's oyster for the low-low price of 1.5% of your portfolio annually. Meanwhile,they do NOTHING for this fee. Tell those active managers to eat a dick. I told mine to eat one, and he was not happy about it. The thing is, there's nothing he can do about, that 1 percent gouging mother fucker! I feel liberated.
The real action & outperformance in fixed income is in the BDCs & Private Credit. Blue Owl Capital is up 10% + 5% divided this year alone. In 2023 they were up big as well. Then there is Ares Capital, FS-KKR, Bain Capital, etc. There is also the CLO markets which have done very well. I own 2 CLO ETFs that are both up about 16% in the last 12 months (JBBB & CLOZ). Then there are leveraged loan CEFs which are basically just leveraged BDCs (Senior debt, Mezzanine, etc.). A lot of them are up like 20-40% in the last 12 months (FSCO, VVR, JFR, BGT, etc.).
%% Good + good . LOL hard to lose money in RE unless insane leverage is used . Or must be ''D'' like a dumb big city, where they promote or allow stealing under what ,is it $999??
I think lot a of muppets are going to have failed CRE investments pawned off on them. I would not buy RE without knowing exactly what I'm getting. I completely expect organizations to roll back rent into new leases with some number of free months just so the owners can say the tenants are current while the sell to some unsuspecting person.