Products June 16, 2009

Commonwealth Adds Portfolios with Alternative Asset Classes

Commonwealth Financial Network announced the addition of three portfolios with alternative asset classes to its lineup of in-house managed portfolios.
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Commonwealth said it is the first series of its kind for the independent broker/dealer. According to a news release, the Preferred Portfolio Services (PPS) Select Portfolios with alternatives contain varying percentages of long/short, market neutral, commodity, and managed futures asset classes, with a focus on the following objectives:

  • Primarily Equity with Alternatives
  • Balanced Equity-Oriented with Alternatives
  • Balanced Fixed Income-Oriented with Alternatives.

Commonwealth said financial advisers looking for new client portfolios that seek to minimize volatility during future down markets can take advantage of these new portfolios that incorporate alternative asset classes into traditional portfolios.

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“The integration of alternative asset classes reflects the emerging consensus on best practices in the profession,” said Brad McMillan, Commonwealth’s chief investment officer, in the release.

The portfolios bring a strategy that has traditionally been reserved for institutional investors to the general investing public, the firm said. The minimum investment is $25,000.

“A bigger toolbox widens the range of options advisers can offer to clients, and it enables them to provide more specific solutions to specific clients,” McMillan added.

 

Data & Research June 16, 2009

Wealthy Investors Shy Away from Investment Opportunities

A global survey released by Barclays Wealth found that most wealthy investors recognize opportunities, but aren’t seizing them.
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The survey of 2,100 high-net-worth (HNW) individuals found that the majority of investors (88%) recognize significant investment opportunities in the current environment; however, the majority of that group (68%) is shying away from them because they believe the risk of further price falls is too high.

U.S. Most Optimistic

HNW investors also show inertia about changing their portfolio, according to a press release of the results. When asked about allocations to 12 different asset classes, more than half of the respondents said that they would not be making adjustments to each of the asset classes.

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Investors are drawn to familiarity, with 53% saying they would only invest in what they know, the report found. The most significant portion plan to increase their allocation to real estate (25%), with government bonds (22%), and commodities (21%) the next most popular asset classes.

U.S. investors are among the most likely to increase their allocations to cash (23%), and overwhelmingly most likely to invest in domestic stocks (21%). U.S. investors are also the most optimistic, stating that there were significant investment opportunities (29%).

The survey was taken from EIU databases of individuals around the world, undertaken between March and May. Respondents in the U.S. had at least $1.5 million in investable assets

The full report is available here.

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