Displaying items by tag: alternatives

According to a Bank of America Private Bank study, younger, wealthy investors are turning to alternative investments. Bank of America polled 1,052 high-net-worth investors with at least $3 million in investable assets from May to June 2022. The study revealed that 75% of high-net-worth investors between the ages of 21 and 42 don’t expect above-average returns from traditional stocks and bonds, with 80% of these young investors flocking to alternative investments. In fact, younger investors are allocating three times more to alternative assets and half as much to stocks than other generations. Alternative investments can include hedge funds, private equity, real estate, commodities, and structured products. The move to alternatives has most likely been triggered by concerns over losses in the stock and bond markets. There has also been an increase in advisors turning to alternative investments, according to a survey from Cerulli Associates. Based on that study, the top reasons for increased alternative allocations include reducing exposure to public markets, volatility dampening, and downside risk protection.

Finsum: Both young, wealthy investors and advisors are turning to alternative investments due to stock and bond losses and the need for downside protection. 

According to a new survey from advisory and accounting firm EisnerAmper, inflation is the largest business challenge for alternative investment managers. The annual survey was conducted during EisnerAmper’s 7th Annual Alternative Investment Summit. It revealed that almost three-quarters of alternative investment professionals believe the U.S. is already in a recession or will enter one by the end of the year. In addition to inflation, geopolitical concerns and escalating regulatory obligations were also named as top business challenges for alternative investors over the next year. Peter Cogan, Managing Partner of EisnerAmper’s Financial Services Group stated that “2021 has been a rollercoaster for alternative investment managers. The ongoing war in Ukraine, coupled with global records of inflation and poor public market performance have forced investors to be nimble in their investment philosophies. The Federal Reserve has made it clear that they’re steadfast in their mission to lower inflation and the survey shows that alternative investors expect this to be a long-term challenge to navigate.”

Finsum:According to a recent survey of alternative investment professionals, inflation, geopolitical concerns, and escalating regulatory obligations are the top business challenges for alternative firms.

The Carson Group recently announced several new developments during a Partner Summit, including a new model portfolio hub. The company, which was founded in 1983, is made up of three related businesses including a wealth management firm, a coaching network, and a partnership established in 2012 with approximately 120 affiliated firms. The firm’s announcements included updates and additions to its rapidly growing platform, including a lead generation program, a new investment research portal, additional alternative investment options, and a “model hub” to let advisors administer multiple accounts simultaneously. Burt White, Chief Strategy Office of Carson said this of the new model portfolio hub, “What it allows you to do is to create a model and tie multiple clients to that model. One, two, 15, or a hundred. And then every time you change the model, it goes through and does it for all 100 of those clients that are tied to the model, as opposed to today, where you have to go into every single one.” The model portfolio hub is expected to launch early next year.

Finsum:Carson Group announced several new additions to its platform, including a model portfolio hub that lets advisors administer multiple accounts simultaneously.

CAIS recently announced that Mariner Wealth Advisors selected the firm to provide a customized alternative investment platform solution for the firm’s rapidly growing network of advisors. CAIS is a leading alternative investment platform for independent financial advisors. It provides advisors with a broad selection of alternative investment strategies, including hedge funds, private equity, and more. Mariner Wealth Advisors is a privately held advisory firm with over $60 billion in assets under advisement. CAIS will offer Mariner’s advisors access to a broad menu of alternative investment funds and products, educational resources, end-to-end digitized transaction processing, and third-party reporting integrations. Mariner’s advisors will receive access to a curated menu of diversified alternative investment products across asset classes and qualification levels. CAIS will also assist in the launch of proprietary funds and multi-manager funds managed by Mariner Wealth Advisors and enable the firm to add its own sourced third-party funds to the platform for centralized monitoring, transacting, and reporting.

Finsum:Alternative investment platform CAIS was recently selected by Mariner Wealth Advisors to provide its advisors with a broad selection of alternative investment strategies.

Fidelity Investments is expanding its alternative offerings with a new private credit fund. According to Ignites, the company registered the Fidelity Private Credit Fund as a ‘40-Act fund structured as a perpetual-term business development company. The fund will be managed by Fidelity Diversifying Solutions, the company’s new alternative unit. The fund, which will focus on lending to smaller firms, is looking to raise between $100 million and $1 billion initially. The fund will allow investors who don’t necessarily meet the requirements needed to invest in private equity, venture capital, or hedge funds. However, it does require them to have a gross income of $70,000 per year or a net worth of $250,000. According to the fund’s prospectus, net fees for the fund will range from 4.89% for institutional shares to 5.74% for S-class shares. It will also have a performance fee of 12.5% each quarter exceeding 5% growth and 12.5% of cumulative realized capital gains from inception through each calendar year.

Finsum:Fidelity is expected to launch a new private credit fund for investors who typically don’t meet the requirements needed to invest in private equity or hedge funds.