Alternative Investments
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.
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Bernstein’s recent analysis indicates that the crypto fund management industry currently stands at approximately $45-50 billion in assets. However, the firm foresees a substantial growth potential, with expectations that it could burgeon to a staggering $500-650 billion within the next five years. This projection is rooted in the belief that the cryptocurrency industry is evolving from its current status as a relatively small “cottage industry” to becoming a formally regulated asset management sector.
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More Stories on Alternative Investments
Globally, Canadian Institutional Investors Most Likely to Boost Alt Investments
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.
Fitch Study: Alternative Investment Returns Doesn’t Beat Equities
Fitch Ratings studied the returns from alternative investments made by 180 state and local public pension funds over the period 2001 through 2017 and found they were not nearly so outstanding as hyped.
Cerulli Associates: European Retail Investors Seek Alternatives
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.
Corporate Defined Benefit Plans Now Have “Alternatives”
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 Faces New Criticism Over Fossil Fuels
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.
Is the Wealthfront Risk Parity Fund Living Up to its Promise?
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.
ACP to Launch ESG Alternative Investment Funds
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.