A
new article in the Financial Times has pointed out the fact that many
pension funds and other institutional investors may need to take on
more research staff if they want to make the most of alternative
investment opportunities. This has led AAA to warn pension funds that
they may want to think twice about bringing their research in house.
Boston,
MA, USA, August 9, 2012 -- A new article in the Financial Times
has pointed out the fact that many pension funds and other
institutional investors may need to take on more research staff if
they want to make the most of alternative investment opportunities.
This has led Alternative Asset Analysis (AAA) to warn pension funds
that they may want to think twice about bringing their research in
house.
This
view was reflected by Peter Urbani, who used to work for Infiniti
Capital, and who spoke to the FT about his experiences. He said, "The
recent acquisition of Sovereign by Mercer is an indication that
pension funds are starting to look at alternatives, but realising
that they need to do it internally.”
He
explained that turning to alternatives meant that researchers would
have to carry out more in-depth due diligence than when dealing with
traditional asset classes, which equates to more work.
A
growing number of large investment institutions, such as pension
funds are turning increasingly towards the idea of alternative
investment. Following the economic crisis, investors are keen to
receive something tangible in exchange for their investments and are
also interested in diversifying their portfolios against risk.
One
option is direct forestry investment. This can be done by buying up
physical sections of forest or plantation and cashing in the profits
once trees grow and are harvested for timber. However, investing
through a firm like Greenwood
Management means investors get all the benefits of
timberland investment, but will start to see returns on their
investment much sooner.
Timberland
investment has become extremely popular as it has regularly
outperformed stocks and shares and provides a very effective hedge
against inflation. What’s more is that if, when the time come to
sell the timber you have been growing come, but the market price
isn't right, investors can simply hang on to their investment and
watch it grown some more.
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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