By Jessica Lynn Rabe
A complete evaluation of the Liquid Alts industry and the way ‘40 Act items Can increase consumer Portfolios
Liquid possible choices provide traders entry to hedge fund techniques with the advantages of ’40 Act items: reduce charges, greater liquidity, higher transparency, and better tax efficiency.
Alts Democratized is a hands-on consultant that provides monetary advisors and person traders the instruments and research to reinforce consumer portfolios utilizing substitute mutual money and ETFs. Well-grounded in learn and replete with greater than a hundred shows of Lipper info, Alts Democratized profiles the pinnacle ten cash in all the 11 Lipper liquid alt classifications. This comprises overall web resources, fund flows, chance and go back metrics, and the issue exposures that force functionality and aid clarify correlations to numerous types of beta. Jessica Lynn Rabe and Robert J. Martorana, CFA, mix this learn with a entire framework for fund choice and portfolio building to reinforce the asset allocation method, facilitate portfolio customization, and deal with shopper expectations.
In addition, the ebook contains sensible views on concerns pertinent to monetary advisors resembling charges, customer suitability, and volatility administration. This is helping advisors practice the techniques to portfolios and supply actionable funding recommendation. The authors additionally interviewed executives at top wealth administration businesses to supply colour on traits and most sensible practices.
The significant other web site offers ancillary fabrics that strengthen and complement the e-book, including:
- The authors’ most sensible ten takeaways
- Classification cheat sheet
- Portfolio development consultant (full color)
- Talking issues for clients
- Q&A on liquid alts
- Presentation with all 118 indicates from the e-book (full color)
Alts Democratized comprises an entire source for the consultant looking new resources of alpha, diversification, and hedging of tail risks.
Read or Download Alts Democratized, + Website: A Practical Guide to Alternative Mutual Funds and ETFs for Financial Advisors PDF
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Extra resources for Alts Democratized, + Website: A Practical Guide to Alternative Mutual Funds and ETFs for Financial Advisors
The fund manager research teams recommend a significantly higher weighting to alternative strategies, with most clustering around 10 percent to 15 percent. This suggests significant growth ahead as advisors and investors become more familiar with the products. 1 shows Lipper data for total net assets (TNA) of ETFs and open-end mutual funds. 9 trillion in 2012. Much of this growth reflects market appreciation, since the Standard & Poor’s (S&P) 500 rose 32 percent in 2013. The recent growth in the mutual fund industry also reflects organic growth, represented by net inflows, which were $547 billion in 2013.
Three funds came in with low VaR measures: 1. Metropolitan West Strategic Income Fund Class M (MWSTX) 2. Absolute Strategies Fund Institutional (ASFIX) 3. Putnam Absolute Return 100 Fund Class A (PARTX) The Metropolitan West Strategic Income Fund has both low tail risk and low systematic risk. This process illustrates how investors can screen for funds that offer multiple attributes that enhance the risk/return profile of portfolios. TOP TEN FUNDS The Wells Fargo Advantage Absolute Return Fund (WARDX) tops the list in terms of total net assets and estimated net flows for Absolute Return Funds.
WARDX has much lower minimums than GBMFX, and is available through multiple advisor platforms with an initial investment as low as $1,000; GBMFX, in contrast, requires a minimum investment of $10 million. To some degree, the success of WARDX in gathering assets reflects the reach of the Wells Fargo franchise: WARDX offers essentially the same strategy as GBMFX, though for retail investors. 1 billion. The blockbuster success of this strategy demonstrates the importance of distribution, as well as the allure of a strategy with a 10-year track record.
Alts Democratized, + Website: A Practical Guide to Alternative Mutual Funds and ETFs for Financial Advisors by Jessica Lynn Rabe