Commentary, News, Insight

Institutional investors anticipate dramatic change in 2017 – is it time to take action?

A Natixis survey1 of institutional investors (link) shows deep concerns over populism and politics, diverging central bank policies, and potentially rising interest rates. Anxiety over these risks is driving expectations of sharply higher equity market volatility over the next year.

Source: Natixis 2016 Global Survey of Institutional Investors

One way institutional investors are seeking to mitigate these risks is by including or expanding the use of alternative investments.  While we believe alternative investments should be an essential component of most client portfolios, many advisers find that alternative investments, despite their promise, often consume a disproportionate amount of research time and effort, are difficult and expensive to access, or deliver disappointing results. In fact, Harvard University’s endowment fund just decided to outsource most of its investment functions because it could no longer justify the “organizational complexity and resources necessary”.2 (link)

Allow us to propose another approach.

Palladiem’s Multi-Strategy Alternative portfolio reached its 5-year track record at the end of 2016.  The strategy has outperformed the HFRX Global Hedge Fund Index each year since its inception in 2012 with similar volatility and low correlation to traditional asset classes.3 ETF product expansion has afforded us the opportunity to offer a liquid and transparent strategy that competes favorably on pricing with most mutual funds, while designed to be more inexpensive, more liquid, and more transparent than the average private hedge fund.

Palladiem’s Multi-Strat Alternative portfolio is readily accessible on industry platforms such as Schwab Marketplace, TD Ameritrade Separate Account Exchange, Envestnet, and Folio Dynamix, or we can deliver models directly to your firm. (view pdf)

By making the decision to partner with Palladiem to provide your clients with liquid alternative strategies designed to help reduce total portfolio volatility and improve client outcomes, you will also be providing your clients with the benefits of:

1)Leveraging a team with a track record of effectively managing alternatives

2)Daily liquidity and transparency with regard to underlying strategies

3)Easy access at a highly competitive cost

Palladiem, as an advisor-centric investment firm, has a long history of helping advisors effectively incorporate alternative investments into client portfolios.  To learn more about how Palladiem can help you, contact Palladiem me at info@palladiem.com or (484) 320-8809.  

1 “2016 Global Survey of Institutional Investors”, Natixis Global Asset Management

2 “Harvard Endowment to Lay Off Half Its Staff”, Wall Street Journal on-line edition, Juliet Chung and Dawn Lim, January 25, 2017

3 Performance before fees. The performance results contained herein do not represent the actual trading or investment performance of actual accounts invested in accordance with the investment strategy, but present performance of a hypothetical account invested in ETFs and mutual funds included in this investment strategy based upon the allocation established by Palladiem LLC. The performance information is gross of standard advisory fees payable to Palladiem LLC (0.60%) and does not include any other expenses not covered by the advisory fee, which will reduce a client’s return. Past performance is no guarantee of future results.