Many Sophisticated and Accredited Investors turn to Alternative Investments, as a tool to reduce risks, reduce volatility and increase the potential return.
Most experienced HNWI (High Net Worth Individuals) Investors understand the importance of incorporating Alternative Assets into their investment portfolio. In fact, if a decade ago, the question at hand was whether it was worthwhile to engage in Alternative Investments at all, now the new questions arise – such as what is the appropriate exposure risk rate for these investments, and how the fund secure the funds, and what are the underlying assets in which it is worth investing. In search of answers to these questions, it is worth looking at Large and Prominent Investors (HNWI) worldwide and examining what their approach to Alternative Investments is.
A good example is Yale University, which as of the end of 2020, held a $31 Billion Investment Portfolio. “According to Publications, Yale’s Portfolio has been considered the best of its kind among colleges and universities in the United States for decades. This is thanks to quality management that keeps the investment policy updated at all times, as needed. In 2021, for example, the university changed its investment policy in the portfolio so that Alternative Assets – defined by Yale as “non-market sensitive”, would account for 30% -50% of the entire portfolio, with only 9.5% of the portfolio invested in Real Estate.
Another example is the New York State Pension Fund, which manages $250 Billion in Assets and ranks third in the list of major public funds in the United States. According to its investment policy, about 25% of the investment portfolio is allocated to Alternative Investments. In this case, only A small part of the portfolio is invested in real estate – 9%.
Secure and Hedge to Reduce the Risk
In my opinion, one of the main reasons for increasing the share of Alternative Investments in Portfolios is Stock Market volatility. “Many Investors feel it is time to Hedge the Risks in investments that are not correlated to the Capital Market and expand their Investment Channels.”
The big concern is that we have reached such a high point that repairs are possible at least in the short term in the tradable market. At the same time, the world of Alternative Investments provides Investment opportunities even at this time and with a low correlation to the Capital Market. This is another reason that causes many UHNWI, HNWI, InevestBank, Institutional (Banks and Insurance) Investors to diversify their Investment Portfolios.”
However, since these are Investments intended for Sophisticated Investors, Alternative Investments are usually open to Accredited Investors only.
R.M.G Capital brings the trend to the world.
The recognition of the importance of integrating Alternative Investments in each Asset Portfolio permeates, even if the local trend progresses at a slower pace.
There are more Investment options offered, R.M.G Capital’s Investment Program allows Investors to Invest in transactions such as protected Leverage Debt, Obtain and Funding of Banking Instruments, Senior Debt Leverage backed by collaterals.
In conclusion, exposure to Alternative Investments has already become the lot of Sophisticated Investors, certainly around the world, we bring to you Investments Programs starting from USD$500,000. For UHNWI, HNWI, InevestBank, Institutional, and Private Accredited Investors, these Investment options are expanding, and they allow them to increase the chances of return, coupon, and reduce risks.