Farmland: An Increasingly Popular Alternative Investment

A new report from Prequin found that more investors are buying agricultural/farmland assets to diversify portfolios and profit from the growing global demand for food.  According to a new study by Preqin, the institutional investors seek to diversify their portfolios and position themselves to take advantage of growing demand for food arising from global population growth and increased consumption by the emerging middle classes in developing countries.

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Exploring Alternative Real Estate Investments With Your Clients

Being a property investor can be a great way to make money, as you have direct control over your investment but it actually takes a lot of work. You’ll have numerous tasks from researching the correct location and negotiating purchase price, to working out the financial costs, legal costs, brokerage etc., or if you are renting the property, finding the right tenant who will actually pay the rent without jeopardizing the property. These and countless other arduous tasks that need to be taken care of by property investors, else they will eat into their time, and if they’re not careful, their capital.

For everyday investors, investing directly in multiple residential or commercial properties isn’t always the best option. In fact, if you’re advising clients on how to diversify their portfolios with alternative assets that include real estate, Real Estate Investment Trusts (REIT) and real estate funds are good alternative investment channels that will allow their portfolios to be indirectly invested in property.

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Equity funds should consider flexible investment strategies – report

Africa remains one of the world’s growth opportunities for private equity (PE) investors, with the pool of investment targets growing, a report titled ‘Why Africa Remains Ripe for Private Equity’, reveals. ……..

A report published by Boston Consulting Group, highlights that, to generate the high returns that investors expect, funds should consider more flexible investment strategies and new types of corporate targets.

“Alternative investment approaches are particularly important if funds are to meet the rising expectations of their investors,”

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Easing the ride in turbulent markets

The prospects for savers remain bleak, despite the first increase in US interest rates in nearly a decade. With the recent cut in UK rates and experiments in monetary policy easing, investors are being coerced into taking on more risk. Bond markets have also soared, pushing yields to record lows – the idea that bonds and stocks move in opposite directions is looking like a fallacy.

Apart from understandable concerns about valuations, the current investment environment is challenging for anyone looking to diversify their portfolio. Investors want new sources of return and many alternative assets have grown so much in popularity they are already heading towards the mainstream – real estate, hedge funds and private equity have all grown in popularity in recent years.

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Alternative lenders bet on commercial real estate

REITs, buyout firms and hedge funds are growing their commercial real estate lending activities as banks are increasingly restricted by new regulations and less inclined to make risky property bets. US private funds’ capital-raising for commercial real estate investment had risen nearly 40% as of July from a year earlier.

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Make Money by Investing in Alternative Finance Funds

Investing in alternative finance funds has become increasingly popular in recent years for several reasons. First, is the opportunity to gain outsized returns in an environment that has been hard-pressed to deliver sustained growth in recent years. The second reason is the relative safety of these funds when compared to riskier investments such as corporate bonds or commodities.

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Alternative Assets Evolve Diversity can pay off … in most cases

In the 10 years since the enactment of the Pension Protection Act (PPA), defined benefit (DB) pension plan sponsors have been motivated to shift portfolio allocations. The most notable change has been a de-risking through scaling back traditional equities, with a corresponding increase to lower-volatility fixed income.

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