The global alternative investment space now sits at more than $9 trillion in global assets, and we’re just getting started. Roughly 40% of RIAs are using alternative investments. With the RIA space expanding and alternative investment demand rising among investors – a surge in data, news, and opinion will continue. This channel cuts through the noise to give you the most important actionable insight.
Galaxy Digital, the cryptocurrency investment firm led by Mike Novogratz, has filed an application with the SEC to launch a bitcoin ETF that will trade on the NYSE Arca. The preliminary prospectus states that “the trust provides direct exposure to bitcoin. The shares are valued on a daily basis based on data from bitcoin pricing sources.”
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Time was when actively managed mutual funds were well and truly disrupted by the inexpensive ETF vehicle.
Fed up with lack-lustre performance and exorbitant fees, investors shifted $39 billion out of mutual funds since 2015. On the other hand, ETFs were laughing to the bank with inflows of $1.5 trillion since then.
But ESG investing is the new kid on the block – and it could be ETFs’ day of reckoning.
The Ontario Teacher’s Pension Plan (OTPP) has outlined its procedures for dealing with the impact of climate-related changes on its investments.
OTPP’s inaugural report details its comprehensive approach to various facets of investing in a global environment affected by climate changes.
The Teachers’ Retirement System (TRS) of Texas on Friday made changes to its asset allocation plan.
The changes underscore the $153 billion retirement plan’s worry that stock prices may be over-extended and could correct.
The TRS board adopted a two-pronged strategy to hedge against a downturn in equities.
Mercedes may soon have pre-installed in its cars a blockchain powered mobility platform that will do everything from managing your trip to processing digital contracts, “including the financial posting of the transactions in real time.”
In effect, the car becomes your crypto wallet!
With bankers reluctant to lend to small and medium-sized businesses in Europe after the financial crisis, direct lenders are willingly stepping into the breach.
Proof of that is the response to Alcentra’s recent European direct lending capital raise. With a minimum target size of €3 billion, the firm received €5.5 billion from institutional investors in Europe, Middle East, US and Asia.
In recent years, an interesting trend has appeared. Whereas earlier the public markets shouldered the responsibility for raising capital and liquidity for businesses, in recent times the private markets have taken the lead.
The yellow metal will benefit from the looming “paradigm shift” in investing, he says
According to Ray Dalio, chief of Bridgewater Associates, the ongoing party in stocks will soon run its course. Investors are likely to head for the exits amidst lower returns on equities, seeking other assets to invest in.
At the end of the second quarter Blackstone had a record $545.5 billion in assets under management
Blackstone Group Inc, the world’s largest manager of alternative assets, raised $45.1 billion during the second quarter, giving it a total of $88 billion raised during the first six months of this year.
Luc Besson controlled EuropaCorp ran into financial difficulties after the flop of its 2017 mega-budget sci-fi epic Valerian. The company has reportedly been in talks with potential suitors since May 2019.
Besson is not interested in the overtures of Pathe, a film group that distributes his movies in France.
Art is often called the ultimate alternative investment because it is completely uncorrelated to traditional markets such as stocks
Consider this: If, 18 years ago, you invested in an art portfolio that mimicked the ArtPrice 100, the art index which considers the most significant artists selling on auction, your portfolio would have outperformed the S&P 500 by a solid 250%.
This may be a pleasant surprise, but wine investing can be profitable.
Here’s an example of a drinkable multi-bagger. Someone who bought 1982 Château Latour wine futures when it presold for about $40 a bottle in 1983 would be making a fat profit, because it now sells for about $1,500 a bottle.
It would seem that blue chips are not to be found in the stock market alone. These exist in the art market as well in the form of top notch artists.
And if the above comparison of the first half performance of the art and stock markets is any guide, these blue chip artists are right up there holding their own against the best companies in the American economy!
Two-thirds of Japanese institutional investors have invested in at least one alternative asset class, as persistent low yields have pushed them to look beyond traditional investment routes, says Preqin.
Further, over the next year, almost all institutions with alternative investments were planning to add new investments, the report said.
A survey of alternative investment professionals conducted on June 19, 2019, at EisnerAmper’s 4th Annual Alternative Investment Summit in New York found that nearly half expected significant or moderate economic growth for the remainder of the year.
Trium Capital, the alternative asset manager based in London, is launching an innovative ESG (Environmental, Social and Governance) fund that will invest in European companies in the energy, materials, utilities and industrial sectors.
With 10-year Japanese government bond yields at 0%, and equities generating dividend yields at a mere 1.8%, Japanese institutional investors are shedding their aversion for risk and entering alternative investments like never before.
Alternative investments are certainly the flavour of the season for Canadian institutional investors, according to data from a CIBC Mellon survey. More than half (58%) plan to increase their allocations to alternatives, while 42% said they will maintain existing levels. Across the world, a previous BNY Mellon report said only 53% of investors planned to increase allocations.
Cerulli Associates, the global research and consulting firm, finds evidence that European retail investors are increasing attracted to alternative investments such as hedge funds, private equity, venture capital, and private debt.
Outsourced chief investment officers (OCIO), are increasingly being used by institutions to identify high-quality investment opportunities and extend their range over asset classes. Research by Cerulli Associates indicates these OCIOs are favourably inclined towards alternative investing given diversification benefits and scope for higher returns.
BlackRock is in the eye of a media storm for consistently not putting its money where its mouth is on climate change.
On the flip side, BlackRock’s iShares ESG MSCI USA Leaders ETF (SUSL) hoovered up $851 million when it launched last month. This fund invests in the best corporate citizens in the US as part of a responsible investing theme.
Coming from the stable of Wealthfront Inc., which has over $10 billion under management, the Risk Parity Fund was modelled after Ray Dalio’s strategy that aims to diversify portfolios in such a way as to neutralize large price swings in any particular asset.
Alternative Capital Partners is an Italian asset management firm that focuses on alternatives and applies ESG principles to all underlying asset classes. They believe that fund returns can be improved by the additional thrust on ESG sustainability principles. At the same time, there will be a beneficial impact on the environment and the real Italian economy.