AAA Welcomes Rise in US Alternative Fund Options

A survey that has discovered a rise in the number of alternative funds on offer has been welcomed by Alternative Asset Analysis (AAA), an alternative investment advocacy and research organization.

Boston, MA, USA, October 19, 2011 -- A survey that has discovered a rise in the number of alternative funds on offer has been welcomed by Alternative Asset Analysis (AAA), an alternative investment advocacy and research organization.

The report from Morningstar, which carried out research on mutual funds, has found that there has been an increased appetite for non-traditional investment opportunities. A Morningstar strategist, Nadia Papagiannis, explained, “What investors found out in 2008 was that in times of crisis, credit risk and equity risk are highly correlated.”

The survey found that there are now around 655 alternative style funds in the US, with more than half being exchange traded funds (ETFs).

Several different types of funds are proving more popular with risk averse investors, including long-short funds, in which investors buy stocks, as they would when investing more traditionally.

Those interested in dabbling in commodities and currencies can do so through putting their money in an arbitrage fund, explained Morningstar.

The increase in the number of investment options is simply a response to demand from investors, according to AAA’s analysis partner Anthony Johnson. He said, “People are keen to avoid the risks involved with investing in equities in light of recent scares on the stock markets.”

It’s important for investors to look at all the possibilities when searching for the right kind of alternative investment, particularly now there are so many options, said AAA. Real estate, commodities, currencies, art, antiques and forestry are all options for the forward thinking alternative investor.

Forestry investment firms like Greenwood Management offer individuals the chance to invest as little as £10,000 in timberland in emerging economies like Brazil, where the demand for timber is enormous. Investors receive returns as timber is sold and the whole operation is managed sustainably and therefore offers an ethical investment option.

About Alternative Asset Analysis:
The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.

Media Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-939-9596

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