According to the Australian Shareholder’s Association, “An alternative investment is an asset that is not one of the conventional investment types, such as stocks, bonds and cash. Alternative investments include private equity, hedge funds, managed futures, commodities and wine, art and collectibles.”
The unique quality of these investments is their diversification benefits, lower correlation to the standard asset classes such as equities and bonds. As a result, these investments grew in popularity during Covid to help offset market volatility and generate higher returns. Global bond manager PIMCO expects traditional investments to only deliver a paltry 4 per cent per year over the next decade. For the 20-year period ending in 2022, private equity investments on average have returned 14.75%, compared to 9.25% for the S&P 500, making alternative investments an attractive asset.
Alternatives were only offered to institutional investors, big super funds and the uber rich. While that may have been the case many years ago, things are changing. As the demand for alternatives rises, family offices and wealth managers are demanding access to alts for their clients. In Australia alternatives can only be accessed by wholesale & sophisticated investors or retail investors via their super fund.
The downside to this exquisite class of assets is the illiquidity and long investment lockup periods. Forbes says, “Alternative investments tend to be private, rather than public, and they are generally less liquid, typically with reduced liquidity ranging from monthly to 12+ years, so they may be difficult to exit and your money may be tied up for an extended period of time.”
By 2040, predictions indicate that our world will face unprecedented challenges brought on by climate change unless we implement massive shifts in both behaviour and investment. The drive to combat this impending threat could trigger the most largest investment cycle in human history. But here's the catch: the illiquidity of climate assets held in Alternative Investment funds, limits their accessibility, confining them to a few governments or colossal funds.
That's where RegenX steps in.
Alternative Assets we cover:
Wealth managers can explore a vast universe of alternative investments with RegenX, unlocking opportunities that span various industries and scales, thus diversifying portfolios and enhancing potential returns for your clients.
Experience seamless transactions within a secure environment. Our platform utilises advanced digital ledger technology, ensuring not only swift but also secure investment processes, preserving both your and your clients' peace of mind.
By tokenizing alternative investments, RegenX provides wealth managers with enhanced liquidity options, enabling easier asset transferability and providing a broader scope in managing investment strategies effectively.
Dissolve geographical and financial barriers by tapping into global private markets. Leverage our platform to connect your clients with a plethora of international investment opportunities that align with their financial and impact goals.
Harness the power of our robust analytics and data-driven insights to fortify your investment decision-making process. With a suite of tools at your disposal, stay abreast of market trends and optimise your strategies with precision.
Position yourself at the forefront of sustainable investing. With RegenX, curate portfolios that not only cater to financial objectives but also resonate with the growing demand for impactful, environmentally conscious investments.
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