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July 2023 Private Performance Thumbnail

July 2023 Private Performance

July's private performance numbers have all been tabulated. And it was another great month all round for the  private sectors in 9M Investments' client portfolios. But before we jump into July, lets take a quick look back to June. Since our last post, the numbers for iDirect Private Markets Fund and Blackrock Private Investments Fund have been updated. iDirect had a very strong June with 2.99% return and is now up 3.88% on the year. Blackrock's fund only updates every quarter, but had it's 2nd quarter number come in at 1.36% and is up 2.93% through June 30. 

Now let's talk July. Starting with the REITs, I've been very happy with their performance, especially if you compare the performance to the public REIT index. Blackstone's BREIT is up 2.57% YTD, which on it's face is nothing special. But the public REIT space is down -6.8% and that's on top of the -24.9% the public REIT index was down in 2022. By the way BREIT was up 8.44% in 2022. A very similar story with the Nuveen GC REIT. Although this fund is down YTD at -.79%, that is still out performs the public space. And this fund was up 7.9% in 2022. And they have raised their dividend to 5.46%. And remember that dividend has some fantastic tax advantages.

Private credit space is killing it this year. Just like the private REITs, when interest rates rise, these types of funds take advantage. With the Carlyle and Blackstone funds, that has shown up in 2 places. First, the monthly dividend for both these funds went from the 7-8% range to the 10% range. And in fact, Blackstone's fund BCRED, raised their dividend again. From 10.1% to 10.6%. These are funds that work well in the income bucket of the portfolio. I especially love these funds in Roth accounts. 10.6% flowing from your Roth to your bank account tax free every month sounds nice to me. The 2nd place that interest rates have affected these funds is in the bottom line return. Both funds have had equity like returns with the Carlyle fund at 8.65% and BCRED at 7.7% YTD.

Year to Date
Annualized Dividend Rate
Blackstone's REIT1
Nuveen Global Cities REIT2
Blackstone Private Credit3
Carlyle Tactical Credit4
iDirect Private Markets Fund5
BlackRock Private Investment Fund6

For reference, in July, the S&P was up at 3.11%, the NASDAQ-100 was up slightly higher at 3.68%, and the AGG(Bond Index) was up .26% and is up 1.48% through 8/19/2023. The gains have slowed some in the public space, but still very strong returns in the board markets in July. These returns have come in much more choppy way. I think this what the markets will feel like the rest of the way this year. If that is the case, these private investments will help smooth out the overall portfolio.  We can talk further if this is a strategy that you think could help support your overall portfolio construction. 

  1. https://www.breit.com/performance/
  2. https://www.nuveen.com/gcreit/performance
  3. https://www.bcred.com/performance/
  4. https://www.carlyle.com/fund?_month=4&_year=2023
  5. https://idirectpmfund.com/idirect-pm-fund/performance/#performance
  6. https://bpif.com/portfolio-and-performance/default.aspx
  7. Performance through July 31, 2023
  8. Performance through June 30, 2023

This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.