Deals & People June 16, 2008

Emerald’s Alternative Allocation Strategies Offered on FOLIOfn Platform

Investment manager Emerald Asset Advisors, LLC, said its alternative strategies are now available on the FOLIOfn Institutional platform.
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The Emerald Allocation Strategies (EAS) hedges investments as an alternative to hedge funds, and is now offered on the FOLIOfn Institutional platform, a self-clearing trading platform with technology services for broker/dealer representatives and independent advisers, according to a press release.

The new offering from Emerald is aimed at financial advisers who wish to outsource all or a portion of their back-office, administrative, reporting, and investment needs, according to the release. Emerald said the launch is part of a broader effort to introduce its investment program to advisers and broker/dealers.

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EAS consists of three distinct portfolios, constructed using combination of top-down, bottom-up, fundamental, quantitative, and technical analysis to compose the desired mix of funds for each portfolio, the company says. Emerald said the three portfolios are:

  • Hybrid: The Hybrid strategy’s objective is to achieve real, absolute returns (i.e. positive net of taxes and inflation) over any three-year period, regardless of market conditions. Hybrid investment styles exhibit low volatility and low correlation to the broad markets.
  • Concentrated Equity: This strategy seeks to generate true alpha (excess return verse the stock market benchmarks) through a diversified mix of concentrated equity mutual fund styles that each pursue long-term growth of capital using a very limited number of underlying holdings (typically 30 or less).
  • Global Cycle: The Global Cycle strategy is a long-term approach to capital growth involving the research and identification of global investment themes that are in the midst of a long, positive business cycle.

More information is available at www.EmeraldAssetAdvisors.com.

Data & Research June 16, 2008

Affluent Boomers Express Top Retirement Concerns

Although more affluent investors are choosing to work in retirement to supplement their income, few are choosing to meet more often with their adviser, a study by Cogent Research says.
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Maintaining a current standard of living is the top concern among affluent investors age 45 to 65, according to recent Cogent Research. The study, The Retirement Income Dilemma, examines the behaviors and attitudes of pre-retirees. According to a release about the results, the top 10 investor concerns are:

  • fear about not maintaining current standard of living;
  • healthcare/prescription costs;
  • availability of Social Security;
  • outliving assets;
  • inflation of U.S. dollar;
  • market conditions/performance during retirement;
  • leaving legacy for children/heirs;
  • impact of taxes on income;
  • paying for children’s education; and
  • caring for elderly parents.

Unlike previous generations, nearly 20% of American pre-retirees expect to continue working in retirement in order to supplement their retirement income or provide reasonable insurance coverage, the release says. However, less than 1% choose to meet their advisers more often to discuss their investment options.

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Lacking a Plan

Only half (51%) of affluent investors have actually completed a detailed retirement income plan, according to another Cogent Research study.

Predictably, the number of affluent investors with a retirement plan increases among those closer to retirement. Yet 31% of those born between 1925 and 1945 still do not have a plan. Among those born between 1946 and 1955, 42% lack a retirement income plan, and the number is even higher at 53% for those born between 1956 and 1964.

“The fact that even the most affluent of investors amongst us show clear signs of anxiety, confusion, and lack of direction suggests a budding retirement income crisis here in America,’ said Alan White, project director of Cogent Research, in the release. “Furthermore, it is clear that financial advisers and asset management firms have a long way to go in terms of proving themselves as resources to investors.”

The Retirement Income Dilemma is based on a series of focus groups among affluent ($250,000 in investable assets) and high-net-worth investors ($1,000,000 or more investable assets) aged 45 to 65. The groups were further segmented by investors who are at or near retirement and others who see a retirement horizon five to 10 years out. Focus groups were also conducted with advisers across all distribution channels.

See also: Affluent Boomers Look Outside the Plan.


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