Solutions

Alternative Investment Strategies

Alternative Investment Strategies

You may choose to work with Mid Atlantic’s Product Management Group to access high quality alternative investment products for your high net worth and institutional clients*.  This group performs due diligence and monitoring activities across a select array of investment choices in this asset class.

While alternative investments may involve a lack of liquidity, and certain risks that may be greater than those associated with traditional investments, the asset class has been widely embraced by sophisticated investors including family offices, endowments, foundations, and large retirement plans.  These investors typically are seeking the premium risk adjusted returns and reduced portfolio correlation that can be obtained from alternatives.  A broad based 2010 study of endowment funds** found that on a dollar weighted basis, portfolio allocation to alternatives (hedge funds, real estate, private equity, commodities, managed futures, energy) averaged 52% while just 15% was allocated to domestic equities among this group.

Our Product Management Workgroup will research and evaluate characteristics such as manager track record and background, risk management policies, use of leverage, correlation to benchmarks, and other relevant factors in the due diligence process.

Many alternative investments qualify for custody services through the Mid Atlantic/National Financial clearing alliance, allowing you and your clients the convenience of seeing these investments appear together with traditional investments on the monthly statements.

In addition, you may gain access to registered alternative investment funds  from well known third party providers via our alliance with Fidelity Alternative Investments Network®.  These investments also appear on client statements for ease of tracking and management.

 

* Alternative investments may be offered only to investors who meet certain suitability standards, including minimum net worth.

** 2010 NACUBO-Commonfund Study of Endowments