A lot more of our clients have shown interest in the Alternative Markets, especially with the recent uncertainty in the world. Alternative investments are a great way to boost returns, generate income and provide diversification from traditional investments to achieve your financial goals. The alternative market may be utilized by large corporations, for example, to provide high limits of coverage over a large self-insured retention (SIR), or by smaller entities participating in a risk retention group (RRG) or group captive program. Note that the distinction between traditional and alternative markets tends to blur over time as many traditional insurers expand their offering of products to encompass alternative-type funding techniques and vice versa.
There are several reasons an investor or a portfolio manager is likely to consider adding alternative investments to their portfolio. In some cases, money generated from an alternative investment might be subject to far more favorable tax treatment than that from a more traditional investment.
While the list of alternative investments is extensive, some of the ones you might encounter in the real world include, but are not necessarily limited to, the following:
- Stock or membership units in a privately held business
- Real estate and all of its many derivations,
- Master limited partnerships, which can own and operate everything from oil pipelines to capital-intensive theme parks
- Commodities, including precious metals such as gold, silver, platinum, and palladium, as well as crude oil, natural gas, ethanol, etc…
- Venture capital
- Peer-to-peer lending
- Mineral rights
- Intellectual property such as copyrights, song rights, patents, and trademarks
- Privately underwritten mortgages
- Structured settlements
- Art and collectibles
- Private equity
- Tax credit
- Hedge funds
- Tax lien certificates
Our team has years of experience and we have seen substantial growth in investments over the time we have provided this service to our clients. This is a great addition to any portfolio that is looking for a different type of investment not typically offered by institutions.
Speak to our team today and find out how investing in the alternative markets can benefit your portfolio.