WSJ: Pension Funds Are Selling Their Office Buildings I wonder how this trend might affect the TIAA Real Estate fund, which IIRC had a lot of prime office buildings? Remote work trends in many sectors definitely is having an impact on the need for costly "downtown" office properties, let alone large office properties generally. I don't think things will ever go back
100% to the way they were pre-Covid.
Pension Funds Are Selling Their Office Buildings
https://www.wsj.com/articles/pension-funds-are-selling-their-office-buildings-11661381460Major U.S. and Canadian pension funds are cutting back investments in office buildings, betting that prices will likely fall as the five-day office workweek becomes a thing of the past.
Retirement funds are still buying property, partly in a bid to reduce the impact of inflation. But those investments are more focused on warehouses, lab space, housing and infrastructure such as airports.
The shift is part of a broader transition away from traditional real estate holdings in offices and shopping centers as the Covid-19 pandemic has accelerated the rise of e-commerce and remote work.< - >
North American public pension funds manage more than $6 trillion and allocated an average of 8.7% to real estate as of Aug. 19, according to researcher Preqin Ltd.
Private real-estate funds currently hold 23% of their investments in offices, down from 34% three years ago, according to an index maintained by the National Council of Real Estate Investment Fiduciaries. These funds’ holdings in retail space have fallen to 10% from 17% over the same period, the council said.
Meanwhile, industrial properties have grown to account for 31% of those private real-estate funds’ investments, according to the council, up from 18% in 2019. Pension officials are increasingly seeking out stakes in airports, highways and utilities. Those so-called infrastructure assets have grown to 4.1% of total pension portfolios from 3% in 2017 for retirement funds that report them separately from other real-estate assets, according to Preqin.< - paywalled sadly unless you know how to get around them and/or are subscribed - >
CRAP. Must be a Canadian resident. 4.4% GIC (CD) 1 year term Think that is in Canadian $. With the exchange rate today $1 USD = $1.29 CAD, does it convert to 3.41% yield (4.4% / 1.29 = 3.41%)?
If that is correct, it is higher than 1 yr CD in US, 2.90% as of last week.
The bottom are likely in truth. i'm down -12 percent in TUHYX. 9.41% SEC Yield right now, though.