AAA Calls for Pensioners to Consider Alternative Asset Investments
Alternative Asset Analysis (AAA), an advocacy group and analysis firm that is keen to convey the advantages of investing in ethical and sustainable alternatives to equities, has spoken out in agreement with Lipper Inc's Global Head of Investment Research, Gabriel Burstein.
- (1888PressRelease) May 05, 2011 - Boston, MA - Burstein said that pensioners need to hedge their bets when it comes to investments later in life, rather than relying solely on equities. Burstein said, "More than 90 per cent of all retirement accounts are invested in long-only investments that only go up when the market goes up.
"Unless advisers want their clients to be prisoners and hostages of the market's direction, this has got to change," he added.
"This is important advice from a high-profile analyst," added Anthony Johnson, partner at AAA and former fund manager. He added, "Financial managers and advisors need to ensure that they properly spread risk in their clients' portfolios - particularly those of pensionable age who have less inclination to take risks by putting all their eggs into the equities basket, which will very quickly empty if the economy continues to be so volatile," added Johnson.
As the future of the global economy remains uncertain, the appetite for a more diverse approach to investment portfolios has clearly increased. Research from Cerulli Associates found that the asset management industry launched 65 funds that took an alternative investment strategy in 2010, compared with 45 the year before - illustrating the growing demand.
Other analysts urge retirees to look at investments that offer a more certain, tangible product that will generate solid return on investment. A good example would be funds such as those offered by Greenwood Management in Brazil. These allow individuals to invest as little as around £10,000 in existing plantation of sustainable timber crops in the South American country. The money then helps the plantation owners to expand their work and launch more plantations that in turn generate more returns for the investors.
Forestry investment has long-been regarded as a reasonably low-risk asset as owners can sit on their investment as long as they can or need to get the very best returns on their cash. If the economy is suffering and timber processes have fallen as a result, simply leave the trees to grow until prices pick up.
"Timber prices are seeing a resurgence at the moment so now could be a lucrative time to put up some cash in sustainable projects in Latin America," added Johnson.
Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-898-6317
info ( @ ) alternativeassetanalysis dot com
http://www.alternativeassetanalysis.com
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