Sam Pollock has been a key member of the Brookfield team for 23 years and chief of Brookfield Infrastructure Partners (BIP), one of Brookfield Asset Management’s four publicly listed partnerships, which invests in highways, ports, and power lines. Its shares have returned nearly 20% on a compound annual basis since 2008. Pollock, now 51, is excited about the long-term prospects for infrastructure investing, and sees opportunities today in developing markets and the telecom sector.
PFRDA has issued a revised investment guidelines for National Pension System (NPS) schemes (for private sector), which came into effect on May 8. The guidelines said NPS funds can be invested in units issued by REITS, InvITs, Alternative Investment Funds (AIF) and Basel III tier – 1 bonds. The investment under the new category can only be in listed instruments or fresh issues that are proposed to be listed.
Equity funds and investment managers have tripled their investment in alternative real estate assets -such as student housing and data centres – in the last five years, and many are seeking greater access following better-than-expected returns from their overall real estate portfolio.
After dabbling in traditional investment avenues like stocks, fixed deposits, gold, mutual funds and real estate, some investors are venturing into more adventurous territory—digital currency, crowdfunding and P2P funding—to make their wealth grow. While the returns have been satisfactory in many cases, others have lost money too. We look at the pros and cons of some alternative investing avenues.
Selling your company may be the most important milestone in your professional career. The sale process can be tedious and complicated with potential buyers investigating all aspects of your business. Reviewing your financials, compliance documents, organizational structure and tax positions in the early stages of going to market allows plenty of time for remediation of any uncovered issues, which can maximize the transaction value and accelerate the sale process. Companies that undertake these sell-side due diligence reviews before going to market have a much better chance of impressing buyers, increasing their sale price and reducing the potential delays during a transaction.
“Alternative Investments” are now becoming a sort of ‘buzz word’ with clients, especially high net worth, when talking to their advisers. This is partly because the all-encompassing space has been globally booming over the past decade, thanks to the pain felt by traditional stock/bond investors during the 2008-2009 global credit crisis; and part of this is because investors are, for the first time, being able to gain access to investments that offer unique return drivers in an easy to access mutual fund format.
A feeling of existential dread must have overcome portfolio managers of some of the world’s premier equity funds when confronted with data showing their stock picking prowess could be replicated on the cheap by passive funds.
But the Future Fund has been having these conversations with some on its roster of managers after an overhaul of the way it invests in listed equities.
There has always been this perennial debate when is the good time buy or to sell the market. It is not easy to decide whether to sell or not. High valuations in the private equity market means it can be an easier decision to sell than to buy it is good time to sell. But there are many other factors like low interest rates, economic sentiment, commitments etc., that influence high multiples.
Alternative investments constitute a growing $7 trillion industry and more than 10,000 hedge funds have money in alternative platforms. Still most retail investors are just learning about these lucrative asset classes and seeking expert guidance and easier ways to invest in them. Michael Piwowar, acting U.S. Securities and Exchange Commission chairman, recently proposed eliminating the “accredited investor” distinction, which he believes puts at a disadvantage the smaller investors the commission is supposed to protect. If the change goes through, it would expose a much larger group of investors to alternatives.