What are alternative assets? Why allocate them and why now?

Financial Advisory

21 April 2016

Financial Advisory

The Findings - Winning Advisers, Tuesday 13 October 2015 - Tylney Hall, Hampshire



Sponsor Introducing: Alistair Campbell, Sarasin & Partners

Facilitated by: Chris Davies, Engage Insight

Headline finding1:

Sovereign wealth funds are looking to invest in long term secure assets such as rail roads, bridges and wind farms. 

Regarding renewable energy, Tory’s don't like the high subsidy levels. The business has 15 years left on subsidies but renewables are starting to achieve a lower levelised cost of energy that will allow it to produce energy without subsidies. Wind is seen as the preferred area of investment as the Government is moving away from solar from 2016 onwards. 

Headline finding 2:

What do client’s need? Income bond yields are low thus capital preservation and growth are key, particularly with long term care needs and pension freedom rules.

There is no annuity opportunity for capital growth. 

The example was raised of Oakley Capital Private Equity, owned by Timeout, that focuses specifically on investments outside of those which appeal to the mainstream private equity community. 

Headline finding 3:

UCITS – When it comes to multi asset funds - alternative assets can be a useful option. 

There is a case for active management i.e. Alternative strategies are not a passive strategy for long term growth. There is a client demand and need for growth.

Investing in non-correlated assets provides an advantage as it allows for adaptive approaches to the market sentiment. 

Headline finding 4:

MiFID II was raised as a point of interest in the conversation and what this means for investment managers and IFAs. Although MiFID II is only in draft format, the room discussed the potential outcomes and it was felt that there could be benefit in learning more details on this front.