The alternative investment advocacy group claims that the results of the latest survey from Natixis Global Asset Management shows that more and more investors are turning to alternative investments due to the volatility of the stock and bond markets.
The survey questioned some 151 fund managers about their investing habits and found that 76 per cent said that investing in alternatives is an essential part of protecting their portfolio against risk. In addition, 73 per cent said they are critical in outperforming the general investment market.
“These results are among the most convincing we have seen in recent years and suggest that alternatives are quickly becoming the ‘norm’ among everyone from charities and pensions schemes to endowments and trusts,” claimed AAA’s analysis partner, Anthony Johnson.
Although, overall, stock markets have produced some more solid results this year, they are still vulnerable to major, sudden value losses in response to fluctuations in the economic conditions in countries like China and the US. As a result, many investors still see investing in asset classes like forestry, hedge funds, real estate and even gold, art and wine, as a lot less risky.
“It’s partly about getting something more tangible, with an intrinsic value, in exchange for your investment,”
Of the managers surveyed in the Natixis study, some 88 per cent said they were satisfied with how their alternatives are performing. A huge 93 per cent said they would happily increase the amount invested in alternatives, or at least keep their investment level the same.
Forestry is a solid option for those looking at their first foray into alternative investment. Through firms like Greenwood Management, investors can own their own slice of plantation land with an initial investment of less than $20,000.
Alternative Asset Analysis
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