![]() Our ecosystem and technology bring costs down and empower advisors to seamlessly build and manage portfolios of products that have defined-investment outcomes. While today’s zoo of possible alternative investments might look enticing, there are several problems with adding so much complexity. Our marketplace offers a straightforward structure to add risk-defined notes, annuities, and buffered ETFs to client portfolios. The Bottom LineĪdvisors can stand out in the market using Halo Investing’s tech-driven platform. Moreover, Halo’s protective investments are meant for long-term financial planning and risk management, not just as assets to round out a portfolio. Alternative investments offered through various other firms are meant to simply provide yet another uncorrelated asset to own, which can be a headache in terms of learning about the product, and the firm offering it, as well as the ongoing account maintenance. Structured notes, annuities, and defined-outcome ETFs offered through our platform are designed to help RIAs grow their business by taking control of portfolios and defining risk for clients. Halo Investing is unique in that we keep the advisor top of mind. With our protective investments, including buffered ETFs and structured notes that offer upside market participation, client portfolios can be positioned to take part in a market recovery. At Halo, we’ve discussed the Equity Repair Strategy in recent weeks considering the significant drop in stocks. The last thing an advisor wants to do is park client cash in assets that go on to underperform. Keeping A Long-Term PerspectiveĪ third issue both risk-conscious investors and those with an aggressive long-term horizon must weigh now is what happens if markets manage to recover. RIAs are cautioned to fully understand what they are paying for with alternative investments as well as any additional fees that may be charged simply to hold an account. Many emerging “alts” can be just another way for investment managers to collect high fees in a world of compressing brokerage margins and collapsing index fund expense ratios. Transparent Fees Are A MustĪnother problem with alternatives popping up in today’s investment landscape is their fee structures. If you do have questions, Halo’s team of subject-matter experts is on hand to walk you through how notes work and instill confidence through the transaction process. So there is no esoteric micro-asset class to research. Those terms are outlined and described with clarity on the note’s fact sheet. Structured notes, for example, are priced off an underlying index (such as the S&P 500) with a specific downside protection amount and defined upside participation. Imagine the uncomfortable client meeting after a lousy quarterly performance report from an alternative investment – you must be able to explain why that asset or fund did poorly.īy teaming with Halo, all you need to understand is something you probably already know: how the stock and bond markets work. Halo Investing’s protective investment solutions do not require upskilling to learn about new products and a hot ‘alternative-of-the-day’. In reality, most RIAs are busy enough managing client assets, operating a business, learning about new tax laws, and cultivating relationships to learn about an ever-growing list of assets seeing large inflows. An explosion of “alts” leaves wealth managers increasingly having to explain periodic valuation changes in niche assets, not to mention their contribution to a portfolio’s overall results. A surge in various types of so-called alternatives – from crowdfunded real estate to art, wine, farmland (and so many more) – makes an advisor’s job all the more difficult. So many choices often create confusion, however.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |