Alternative investment advocacy group, AAA, claims that fund managers are under growing pressure from customers to find them interesting, risk-averse and profitable alternative asset classes in which to invest. As a result, boutique providers are proving popular.
Cogent Research’s managing director, Antonio Ferreira, said, "Alternatives are the only category that has had a positive flow in the last 12 months.” He added that a range of emerging boutique alternatives providers are coming on to the market as a result of the growing demand for these kinds of products.
The value of assets under management in alternatives has increased recently and among those with more than 15 per cent of their total investment in alternatives, multi-alternatives tend to be among the most popular options, claimed Mr Ferreira.
AAA welcomes the emergence of some new providers on the market, and their analysis partner, Anthony Johnson, stated, “For a while now, advisors have been claiming that they are under increasing pressure from their clients to put more cash into alternatives. Alternative asset classes, such as forestry real estate, hedge funds and private equity, all offer diversification within a portfolio, which can reduce the correlation between the stock markets and the returns investors receive.”
The Cogent study also found that 40 per cent of wirehouse advisors said that they expect the alternatives market to grow further, a claim that AAA agrees with.
As well as alternatives in general, AAA is particularly keen to stimulate interest in ethical investments, such as schemes that allow investors to buy up small areas of plantation forest in developing countries, such as the scheme run by Greenwood Management in Brazil. “These kinds of alternative investments, that are not closely correlated with the stock markets, represent an attractive option during these tough economic times, added Mr Johnson.
About Alternative Asset Analysis:
The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.
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