SIOUX FALLS, S.D., Aug. 11, 2011 /PRNewswire/ — In just days investors have watched the Dow Jones Industrial Average descend from the 12,700 mark on July 21st to Monday’s close of 10,809. This has the financial world questioning traditional investment strategies. Where is the bottom of the market? Can I afford to ride this market out? How will I ever retire? Are we headed for another recession?
It’s also caused some savvy investors to turn to Alternative Assets. Advisors will also have to add new investment options to their arsenal to serve their clientele, and create a more diverse portfolio of products.
The clearest example of a savvy investor making the best of these times came from a real estate investor in Kentucky who diversified his portfolio with a mix of Wall Street and Main Street investments. “As I watch the market crashing down,” he said, “I realized that my tenants’ rent checks come in the first of every month. This market is easier to ride out when I know my investments will keep paying me consistently.”
There are many alternative Investment opportunities and strategies that Investment Advisors can use to diversify their product portfolio and their clients’ portfolios. True alternative asset investing can be found in Commodities, Private Equities, REITs, Real Estate, or other core alternative assets. The Investment Advisor who prospers in this market will be the one who provides a solution and peace of mind for his or her clients. Alternative assets should certainly be a consideration for achieving this goal.
Advisors opening up their product portfolio to allow alternative assets may need a Qualified Custodian who will hold these assets for their clients. With the changes to the custody rule under the Dodd-Frank Act, many traditional custodians will not hold any new alternative assets and are asking Advisors to move those that they currently hold. Technology, too, is imperative when seeking the right custodian. The ability to hold an asset is obviously important but Advisors and their clients demand tools to provide easy access to both account and investment-level information, simple account opening procedures, and solid compliance and security features.
As an independent qualified custodian, The Kingdom Trust Company’s primary focus is the institutional arena. It provides guidance and assistance to Investment Advisors, Family Offices, Fund Managers and Fund Sponsors looking for custody solutions for both traditional and alternative assets.