October 2023 Private Performance
October wasn't quite as brutal as September, but it was still unkind to investors. These are the moments when you want the private or alternative parts of the portfolio to perform. So how did they do? They held up quite nicely. We won't have the private equities returns until later this month, but private credit and private real estate have held up strong. Both have had the non-correlation affect on the portfolio. But more importantly, these are the pieces that have gained strength with rise of inflation and rates.
Another month of positive performance for the Blackstone and Carlyle private credit funds. These two funds have provided the inflation protection that my client's portfolio needed. The dividends in these funds have risen from 7-8% to both funds now having dividends over 10.5%. And then total performance of these funds has been outstanding.
The private REITs have also contributed to the non-correlation effect. While return has been down by historical standards, they have still been the buoy to equities. Where as the bond index has under performed once again this year. And then the dividend rate has been steady and still tax advantaged. Nuveen's GCR dividend is 100% tax free and Blackstone's is 90% tax free, both work great in taxable/individual accounts because of that.
| Performance | October | Year to Date | Annualized Dividend Rate |
| Blackstone's REIT1 | -1.0% | 2.3% | 4.5% |
| Nuveen Global Cities REIT2 | .08% | -1.14% | 5.56% |
| Blackstone Private Credit3 | .7% | 11.5% | 10.5% |
| Carlyle Tactical Credit4 | .02% | 10.99% | 10.51% |
| iDirect Private Markets Fund5 | -.66% | 8.04%7 | - |
| BlackRock Private Investment Fund6 | - | 7.61%8 | - |
I know it's hard to remember that October was another bad month for the indexes. But the S&P was down at -2.20%. The NASDAQ-100 was down -2.12%. And then the AGG(Bond Index) was also down -.69% in October. The indexes have since have had a nice rally, reaching the highs from this summer. If you have questions if this might a be a good fit for your portfolio, please let me know.
- https://www.breit.com/performance/
- https://www.nuveen.com/gcreit/performance
- https://www.bcred.com/performance/
- https://www.carlyle.com/fund?_month=8&_year=2023
- https://idirectpmfund.com/idirect-pm-fund/performance/#performance
- https://bpif.com/portfolio-and-performance/default.aspx
- Performance through October 31, 2023
- Performance through September 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.