Popular alternative investments such as silver, wine, art and gold are regularly outperforming bonds and equity investments as people diversify to protect their assets from a volatile stock market.
AAA recommends ethical investments, such as investing in sustainable forestry programs run by firms like Greenwood Management in Brazil, to protect against inflation while supporting green initiatives. Investments in these areas help to reduce deforestation and stimulate a green economy, while also supporting the local community by providing jobs.
Natixis Global Asset Management polled more than 150 managers and found that 76 per cent said that alternatives are essential in protecting against risk in the current climate. As stocks and currency investments struggle, 88 per cent of the managers said they were ‘satisfied’
With continued political instability in the Eurozone, investment managers need to think outside the box. John Hailer, president and chief executive of Natixis Global Asset Management in the Americas and Asia, said investors are ‘on edge’ and the poll found almost 75 per cent said that they have changed their approach to risk management over the past five years.
AAA’s analysis partner, Anthony Johnson, says that investment in a commodity such as timber is much safer than speculating on stocks or property. “Timber investments have beaten inflation over the past 100 years by an average of 3.3 per cent.,” Mr Johnson said. “It’s out with the old and in with the new – green investments are the future.”
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320