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How Illiquidity Can Protect Investors
On this week’s episode of The Financial Commute, host Chris Galeski welcomes Meghan Pinchuk, Chief Investment Officer at Morton Wealth. Meghan says she is pleased with the overall resilience of illiquid assets in the face of last year’s volatile market. For most clients, Meghan recommends having at least some part of their portfolio in illiquid assets. Financial planning may help determine which level of illiquidity is appropriate for a client based on their specific situation and needs.
Chris and Meghan also discuss BlackRock’s withdrawal restrictions on property investors, which happened earlier this year. Meghan says many investors incorrectly assumed how liquid BlackRock’s broad real estate investments are. Meghan usually prefers more niche real estate managers as they may be more patient and focused with the size of the sectors they choose to invest in and when to buy.
Chris and Meghan agree it is extremely important to evaluate the structure of an investment, the amount of access a manager has to investors’ cash, and the impact other investors’ decisions can have on one’s assets.
Going into 2023, Meghan says the private credit space continues to be attractive as there is usually a tighter range of return compared to stocks and bonds. She will also continue to evaluate the public market and other potential investments based on three core tenets: cash flow, true diversification, and risk management. Meghan explains that risk management does not mean avoiding risk, but properly assessing the risk relative to the potential reward.
Disclosures:
Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and do not represent the views and opinions held by Morton Wealth. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your attorney, finance professional or accountant before implementing any transactions and/or strategies concerning your finances.
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By Chris GaleskiOn this week’s episode of The Financial Commute, host Chris Galeski welcomes Meghan Pinchuk, Chief Investment Officer at Morton Wealth. Meghan says she is pleased with the overall resilience of illiquid assets in the face of last year’s volatile market. For most clients, Meghan recommends having at least some part of their portfolio in illiquid assets. Financial planning may help determine which level of illiquidity is appropriate for a client based on their specific situation and needs.
Chris and Meghan also discuss BlackRock’s withdrawal restrictions on property investors, which happened earlier this year. Meghan says many investors incorrectly assumed how liquid BlackRock’s broad real estate investments are. Meghan usually prefers more niche real estate managers as they may be more patient and focused with the size of the sectors they choose to invest in and when to buy.
Chris and Meghan agree it is extremely important to evaluate the structure of an investment, the amount of access a manager has to investors’ cash, and the impact other investors’ decisions can have on one’s assets.
Going into 2023, Meghan says the private credit space continues to be attractive as there is usually a tighter range of return compared to stocks and bonds. She will also continue to evaluate the public market and other potential investments based on three core tenets: cash flow, true diversification, and risk management. Meghan explains that risk management does not mean avoiding risk, but properly assessing the risk relative to the potential reward.
Disclosures:
Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and do not represent the views and opinions held by Morton Wealth. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your attorney, finance professional or accountant before implementing any transactions and/or strategies concerning your finances.