One of the most powerful benefits modern technology provides businesses with today is increased visibility into operations. In the real estate segment, deep insight into business performance is paramount to delivering better customer experiences.
One area of the real estate ecosystem that is, arguably, one of the more challenging branches is investment management. There are so many aspects of investment management that require constant monitoring, communication and tracking that it’s difficult to do it all effectively without the aid of technology to help managers stay organized.
Apart from benefitting investment managers and helping streamline their work, the insight captured by technology also gives investors themselves increased transparency around their portfolios.
Investment management is also ripe for growth. Our recent survey of investors found they are positive about the market, with almost half of respondents indicating they plan to increase their real estate investments and stay in the real estate investment game long-term. The winter is a good time to move forward with real estate investments because this time of year tends to be more of a buyer’s market, especially in multifamily, a popular asset class.
There is no better time for investment managers to get ahead of the season and consider how to use technology to strengthen and build lasting relationships with their investors, all of which lead to better business growth.
Be Investors’ One-Stop Shop
Real estate investing is a complex environment because there is a multitude of information to keep track of and to understand in order to make sound investment decisions. Investors rely heavily on their investment managers to provide them with consistent information across a variety of areas like new investment opportunities, property performance updates and analytics, information about the performance of the investment management company, and more.
Managers should use technology to provide this type of information more effectively and more frequently to investors. Historically, investment management required a significant amount of last-minute, manual paperwork to deliver relevant investor information, including fundraising documents, tax documents, statements, distribution calculations and contributions. In the investment world, there’s often an immediacy tied to providing financial information. Managers can employ technology to consistently keep track of financial documents, reducing risks of double entry and other human error and eliminating pressure on investment managers to pull together last-minute requests from investors. It also provides more assurance to investors that they will be able to acquire any information they need through digital records, accurately and concisely, and at any time. This leads to more confidence in investment managers and gives investment managers time back to focus on more strategic work.
Savvy investment managers track and pull every part of the investment cycle into digital, visually digestible, online material that also gives investors themselves direct access to information they need, in one location.
Grow And Strengthen Relationships
Communication plays a huge role in any successful business relationship. By using technology, investment managers can do this better with their investors, keeping operations more organized and transparent. Instead of constant follow-up with investors to get a better idea of where certain actions stand, use tech to be automatically updated on the latest completed activities, like when investors receive a signed document. Take as much of the guesswork and misunderstanding out of investment communications as possible to make for more efficient work.
Through streamlined processes and through working with effective investment managers, investors, naturally, will have more confidence in the investment management business handling their portfolios and fundraising. This kind of credibility and trust, in turn, gives investment management businesses the opportunity to raise even more capital from investors, helping overall business growth.
Understand Your Investors’ Needs
It’s important to understand that while technology will certainly improve operations, it isn’t the only important component of successful real estate investment management. Managers must understand their investor needs and keep those at the forefront of all their business decisions.
For example, managers need to be able to craft different investment strategies depending on the investor they’re servicing. It’s never going to be a one-size-fits-all approach. While some investors might be focused on the multifamily space, others might have a more mixed portfolio, which requires different strategies for different asset classes. It may even make sense for managers to try and specialize in a specific area of real estate, like development, to offer more sound advice on where it might make the most sense to invest in the future.
Additionally, as many investors invest nationwide, not just locally, it’s critical for managers to have in-depth knowledge of the local markets their investors play in, to help lead investors to better decisions and give them more information and background to work with when making those decisions.
While technology absolutely helps take investment managers to the next level, understanding individual investors and their needs, assets and strategies will help managers cross the finish line.
Nicholas Kyriacopoulos: How to invest properly in 2021 and beyond – mtltimes.ca
Entrepreneurs like Nicholas Kyriacopoulos know the importance of how to invest during uncertain times, and it would be fair to say that the last year or so has had a few surprises for everyone following investment markets. While this change and volatility can be very profitable for those who make the right decisions, it also makes those right decisions harder to discern.
The fundamentals of good investment have not changed, however, and will continue to help investors in the future:
Keep it simple
Keeping it simple is a good rule for many areas in life, and investment is definitely one of them.
How much time do you really want to spend managing your investment portfolio, and what kind of returns would make that commitment worth it to you?
If your investment portfolio takes careful attention and management to work, you need to be prepared to give it the time it needs. Keeping a simpler portfolio that doesn’t need as much attention paid to it can be a better option for people who have limited time to spend on their investment decisions.
That doesn’t mean you should necessarily take a ‘set it and forget it’ approach to investment, but absolutely consider the additional time commitment and stress of each potential investment and whether it is worth your time.
Diversification improves reliability and reduces the risk of just about every investment portfolio. Your investments should always be varied enough that even when a few of your investments are in a slump, you will still have enough winners to make a minimum return.
Many entrepreneurs like Nicholas Kyriacopoulos from Toronto recommend holding a variety of asset types as well as stocks. For example, consider bonds and real estate as part of your overall portfolio; make sure you have stocks associated with several different industries.
According to Nicholas Kyriacopoulos, be open to the concept of rebalancing. As market conditions changes, look to shift your portfolio away from investments that with less promising prospects and up your investments in markets that look ready to rise.
Nicholas Kyriacopoulos gives a simple example of rebalancing from the latter half of 2020. While oil prices were not looking great for most of the year, there were signs of incoming change. As a result, some investors sold oil assets over the summer and later purchase oil stocks. They then saw great returns when the stocks surged in November.
As an experienced investor in Toronto, Nicholas Kyriacopoulos advises careful consideration of your current situation and future financial goals. For the most part, this is about the amount of risk you can take on and your ability to recover if an investment doesn’t go your way.
If you still have decades left to work and rebuild, you can afford to take more risks than if you are approaching retirement and are looking for holdings you can rely on for a long time.
Consider your long-term goals
Nicholas Kyriacopoulos observes that besides your current situation, you also need to think about long-term goals. Where do you want to be in five, ten, or twenty years, and what can you do along the way to ensure your investment takes you in the right direction? Setting goals and having plans is just as important in 2021 as it has always been.
Don’t ignore your instincts
As Nicholas Kyriacopoulos, investing does involve risk and it sometimes means going with what you feel deep in your gut. While your decisions should always be backed by data and analysis of the market, following your instincts make it easier to have confidence in your decisions.
Your instincts can come about as a result of noticing minor details others are not noticing. If the feeling is strong enough, take the risk.
Investor Education Month Encouraging Investment Opportunities – 91.9 The Bend
October is Investor Education Month, and the Financial and Consumer Services Commission (FCNB) is using the time to encourage New Brunswickers to think about investment opportunities.
Investor Education Month is a national initiative aimed to provide Canadians with more investor information.
“(As well), to understand their investment decisions, implications of them, and their responsibilities in the decision-making process, and particularly now with new online ways to investing,” said Marissa Sollows, director of education and communications for FCNB.
Sollows mentioned, FCNB has noticed over the years New Brunswickers are becoming more comfortable with investing.
“And as it becomes more accessible to people, we are seeing more New Brunswickers starting to put money away for their future, so that’s positive.”
The majority of New Brunswickers are investing in mutual funds, which is the most common product that investors hold.
Meantime, FCNB has also discovered investing is gaining popularity in young people.
“It could be due to increased media, or an increased use of social media coverage that they’re being exposed to investing topics, and wanting to get in and try a little bit earlier … and there are new trends that are becoming more popular with younger investors like DIY investing and using different online tools and apps,” said Sollows.
Sollows encourages new investors to meet with a registered investment professional and added the future looks quite exciting but will also present some challenges.
Throughout the month, FCNB will provide investor guides, videos, and social media posts on how to be an informed investor.
At any time of year, New Brunswickers can turn to the commission’s website for unbiased investor and consumer tools and information.
Bitcoin tops $60,000, nears record high, on growing U.S. ETF hopes
Bitcoin hit $60,000 for the first time in six months on Friday, nearing its all-time high, as hopes grew that U.S. regulators would allow a futures-based exchange-traded fund (ETF), a move likely to open the path to wider investment in digital assets.
Cryptocurrency investors have been waiting for approval of the first U.S. ETF for Bitcoin , with bets on such a move fuelling its recent rally.
The world’s biggest cryptocurrency rose 4.5% to its highest level since Apr. 17, and was last at $59,290. It has risen by more than half since Sept. 20 and closing in on its record high of $64,895 hit in April.
The U.S. Securities and Exchange Commission (SEC) is set to allow the first U.S. bitcoin futures ETF to begin trading next week, Bloomberg News reported on Thursday.
Such a move would open a new path for investors to gain exposure to the emerging asset, traders and analysts said.
“ETFs open up a raft of avenues for people to gain exposure, and there will be a swift move to these structures,” said Charles Hayter, CEO of data firm CryptoCompare, which tracks ETF products.
“It reduces the frictions for investors to gain exposure and gives traditional funds room to use the asset for diversification purposes.”
Bitcoin’s moves on Friday were spurred by a tweet from the SEC’s investor education office urging investors to weigh risks and benefits of investing in funds that holds bitcoin futures contracts, said Ben Caselin of Asia-based crypto exchange AAX.
Graphic: Bitcoin on the rise https://fingfx.thomsonreuters.com/gfx/mkt/movanjqkapa/bitcoin.PNG
Several fund managers, including the VanEck Bitcoin Trust, ProShares, Invesco, Valkyrie and Galaxy Digital Funds have applied to launch bitcoin ETFs in the United States.
Crypto ETFs have launched this year in Canada and Europe, growing in popularity amid surging interest in digital assets.
SEC Chair Gary Gensler has previously said the crypto market involves many tokens which may be unregistered securities and leaves prices open to manipulation and millions of investors vulnerable to risks.
Citing people familiar with the matter, the Bloomberg report said proposals by ProShares and Invesco, based on futures contracts, were filed under mutual fund rules that Gensler has said provide “significant investor protections”.
The SEC did not immediately respond to a request for comment on the report.
“It’s one of the final frontiers for mandate access,” said Joseph Edwards, head of research at crypto broker Enigma Securities.
“Plenty of Americans in particular have strings attached to how they deploy a lot of their wealth. It allows bitcoin to get in on the sorts of windfall that keep U.S. equities as consistently strong as they are.”
(Reporting by Tom Wilson in London and Alun John in Hong Kong, and Mrinmay Dey and Shubham Kalia in Bengaluru; editing by Alexander Smith and Jason Neely)
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