NEWPORT, RI--(Marketwire - Sep 11, 2012) - The investing environment is expected to be choppy for the next 3-5 years, causing investors to delve deeper into non-traditional investment opportunities to protect wealth, achieve returns and generate income, according to an Aequitas Capital poll of attendees at recent Opal Financial Group private wealth conference here.
Nearly half of respondents (48%) now consider alternative investments as a primary component of their portfolio, as defined by having more than 30 percent of their portfolio in alternatives. Furthermore, about four-in-five (78%) expect to be increasing their allocation to alternative investments over the next three years despite these investments often possessing less liquidity, transparency and track record.
Generating investment income is important to 75 percent of poll respondents, although just 7 percent feel the best place to generate income is U.S. Treasuries which are trading at historic lows. Instead, about three-in-five (58%) respondents have pursued alternative investments to generate income for their private wealth portfolio.
"We are at a historic time when the publicly traded markets struggle to deliver reasonable returns on invested capital and don't provide enough returns to be considered a safe haven. Instead, private wealth managers have little option but to pursue their investment goals through non-traditional private investments with low correlation to public markets," said Robert Jesenik, the CEO of Aequitas Capital of Portland, Ore.
Respondents noted the investing environment is further complicated by the European debt crisis (24%), global economic slowdown (21%), U.S. Presidential election (19%), and the possibility of a U.S. recession (11%), which are causing investors to search far and wide for suitable private investment alternatives.
Reflecting the depth to which investors are searching for returns, responses said "other alternatives" (29%) exhibit the greatest potential in the near future -- an answer more commonly cited than real estate (23%), stocks (16%), venture capital (14%), commodities (12%), bonds (5%) and treasuries (1%). Just one-in-five respondents expect no changes to how they invest in the next few years.
The poll included respondents from 73 private wealth managers and is a project of Opal Financial Group and Aequitas Capital.
About Aequitas Capital
Aequitas Capital is an investment management firm that builds and distributes alternative investment solutions for clients. Aequitas has grown to nearly $300 million in assets under management and $1.86 billion in transactions, by pursuing strategies that emphasize capital protection and low market correlation. Founded in 1993, Aequitas is headquartered in Portland, Ore., with offices in San Diego, San Francisco, and New York City. More information is available at www.aequitascapital.com.