Wealth Managers Turn Attention to Alternative Investments | Total ...

Wealth managers are making alternative investments more of a priority to meet the expectations of their clients and help grow total assets under management.

The easiest explanation of alternative investments is simply anything that is not a traditional investment (stocks/equities, bonds or cash). This simple explanation means there is a wide range of alternative investments that differ greatly in their composition and scope. Alternative investments are divided into two categories: alternative asset classes and alternative strategies.? (For more information about alternative investments see Total Wealth Management?s alternative investments page).

According to a study from McKinsey & Company, which examined alternative investments including hedge funds, real estate investments, private equity, commodities and infrastructure,? volatile financial markets and retirement savings gaps are prompting individuals to?seek more investment options?while minimizing risk.

Among these options are regulated mutual funds and ETFs which are then sold through traditional retail distribution channels.

By the end of last year, alternative investments had reached $6.5 trillion in global assets under management and, according to McKinsey, that number will? only increase in the years ahead.

U.S. alternative investment allocation is projected to increase to 28% of total portfolio assets by end of 2013, accounting for 25% of total retail fund revenue in 2015. The study also shows 100% of U.S. investors and 70% of European investors expect alternative investments to outperform traditional asset management products.

With the new alternative investment boom, some alternative managers specializing in alternatives are experiencing growing pains.

?Specialist players are finding they need to add more customer centric capabilities to their strength in generating alpha,? the study said. ?But alternative specialists aren?t the only ones facing challenges ? traditional wealth managers are faced with compensation and incentive differences as well as cultural and talent management issues.?

References:financial-planning.com. ?Wealth Managers Turn Attention to Alternatives? 6/27/2012 Web. 7/24/2012 http://www.financial-planning.com/news/wealth-managers-alternative-investors-mckinsey-study-2679592-1.html

General Disclosures
This information is provided for informational/educational purposes only. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based on any information provided herein. Past performance is no guarantee of future results.

Third Party Information
While Total Wealth Management has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, timeliness, or completeness of third party information presented herein. Any third party trademarks appearing herein are the property of their respective owners. At certain places on this website, live ?links? to other Internet addresses can be accessed. Total Wealth Management does not endorse, approve, certify, or control the content of such websites, and does not guarantee or assume responsibility for the accuracy or completeness of information located on such websites. Any links to other sites are not intended as referrals or endorsements, but are merely provided for convenience and informational purposes. Use of any information obtained from such addresses is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness.

Source: http://totalwealthmanagementblog.com/2012/07/wealth-managers-turn-attention-to-alternative-investments/

bruce weber fired notorious big biggie smalls lyrics azores emmylou harris disco inferno b.i.g