Mid-Year Outlook 2018
How Breaking Down Barriers to Alternative Investments Can Help Financial Advisors Strengthen Client Relationships

How Breaking Down Barriers to Alternative Investments Can Help Financial Advisors Strengthen Client Relationships

Advisors adopting a holistic approach gain a comprehensive understanding of a client's portfolio, allowing them to do a better job and strengthen the client relationship.

Sponsored by Millennium Trust Company

By Gary Anetsberger

Since 2008, the financial services industry has been struggling to regain the trust of American investors. Today’s advisors are facing a changing regulatory environment, highly competitive fee landscape and the arduous task of differentiating themselves in a sea of competition.

Concurrently, geopolitical turmoil and growing concerns of an impending bear market are leading investors to become more actively involved and opinionated about the investment strategies implemented by their financial advisors.

As individual investors become more active participants in the wealth management process and seek greater protection of their wealth, there is an increasing demand for non-traded alternative investments. However, the complex nature of buying, holding and tracking these assets has limited access for investors. Additionally, the inability to earn management fees has left many advisors with little incentive to recommend alternative assets to clients regardless if implementation would be beneficial to a portfolio.

This gap in comprehensive investment management has led to clients seeking counsel elsewhere or managing investments on their own, ultimately hindering an advisor’s ability to see a client’s full investment portfolio and make the appropriate and effective planning decisions. Advisors that adopt a holistic approach gain a comprehensive understanding of a client’s portfolio, allowing them to do a better job and strengthen the client relationship.

Today, innovative technology solutions are breaking down barriers to alternative investments, making it easier for advisors to learn about, access and serve alternative asset classes to clients. CAIS and Artivest are two examples of technology platforms that have emerged to offer advisors a streamlined approach for deploying multi-asset strategies within client portfolios. The Millennium Alternative Investment Network® (MAIN®) is a free research, education and alternative investment resource built specifically to help investors and advisors bolster their understanding of alternatives, and to provide access to simplified and streamlined investment processes. As popularity and familiarity of alternative investments continue to grow amongst individual investors, advisors and institutions alike will be pressured to evolve archaic technology platforms to meet the demands of modern investment portfolios.

Advisors seeking to provide value to clients by way of alternative assets can do so through a few methods, the simplest being to provide insight. Financial advisors who are not currently positioned to manage alternative investments can stay abreast of their client’s full financial picture by helping with the evaluation of alternative assets and providing guidance on whether or not a particular asset is the right fit for the client’s portfolio and financial goals. Professionals with the ability to offer alternative assets can provide value by first presenting alternatives as an investment option to their clients and, when appropriate, implementing alternatives into modern client portfolios. Alternative investments can serve as a great diversification tool and a way for advisors to stay relevant with clients.

In a world where access to information is bountiful, financial advisors and institutions must be proactive in recommending and providing access to the solutions that will best serve clients. Advisors with the knowledge and ability to offer alternative investments will have a competitive advantage that helps them to deepen client relationships and meet their clients’ needs.

 

Gary Anetsberger Is the CEO of Millennium Trust Company.

Millennium Trust Company performs the duties of a directed custodian, and as such does not sell investments or provide investment, legal, or tax advice.

Learn more at www.mtrustcompany.com.

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