Johnathan Rickman | Blue Vault
Keeping advisors up to date on industry trends and innovations is a core part of Blue Vault’s mission to expand understanding of alternative investments. Our webinars play a key role in that effort, and last month’s virtual sessions delivered timely insights while connecting advisors directly with sponsors. If you missed out, here’s a quick recap of what we learned!
November 4: Taming the Tiger: A Multi-Strategy Approach to Lowering Volatility with Alternative Investments
It’s widely accepted that alternative investments can boost returns and reduce volatility. But with markets more volatile than ever, how long will that continue to hold true? We asked Matt Mayer, Vice President of Investment Solutions at SFA Partners, to put that question to panel of experts. Their advice: stay the course on alts but avoid credit overload.
Noting that investors nearing retirement especially need stability, C. Jay Steigerwald, Chief Executive Officer at Ashford Securities, said alternative investments with quality assets and good managers help protect the investor from volatility. The key for advisors is to manage risk and client expectations — remind them that the illiquidity premium requires patience, even when an investment includes a liquidity feature, he added.
Alts, just like stocks and bonds, come with some degree of risk. But model 60/40 portfolios are increasingly risky in the wake of pandemic-era and Liberation Day market shakeups, Samuel Groban, Senior Product Specialist, Credit at CIM Group, said. “Advisors have the opportunity through alternatives … to have a smoother ride on the volatility side,” he added.
Brandon Flickinger, Senior Managing Director and Co-CIO at Bridge Investment Group, encouraged advisors to commit to portfolio diversity, saying that simply adding credit-focused funds to a portfolio isn’t enough to make the most of private market opportunities.
November 5: Timely Tax Strategies for the Assessor-Averse Wealth Advisor
Managing client tax obligations is crucial, so we asked Andrew Deck, financial advisor at LPL Financial, and Madison Turbeville, VP Product and Platform Management at IFG, to lead a panel discussion on different tax-advantaged investment strategies.
Our speakers — Tim Witt, President of DST Programs at Peachtree Group; Brian Sanborn, Client Portfolio Manager at NexPoint, and Nick Rosenthal, Co-Chief Executive Officer at Griffin Capital — covered everything from 1031 and 721 exchanges to qualified opportunity zone (QOZ) funds.
One key takeaway: Younger real estate investors looking to sell a property but who aren’t interested in an exchange are potentially good candidates for QOZ strategies. Unlocking a fair-market-value basis step-up after 10 years might be all these investors are looking for, Rosenthal said.
November 12: Inside the Fiduciary Mindset: How Top Sponsors Strengthen Investor Confidence
Getting to know a sponsor makes it easier to see past their talking points. It can also be helpful when investments don’t turn out as expected. That was the topic of this candid virtual conversation.
Our moderator, Dustin Zachmeyer, Head of Alternative Investments and Sponsor Relations at Realta Wealth, had some good advice: Ask sponsors how they handle decisions not to deploy capital during market downturns. “For every investment strategy there’s going to be a not ideal time to deploy capital towards that strategy. How a firm reacts to those market cycles is really important to explore,” he added.
“If more people in our industry took a servant approach to all of the people that they connect with outside of their own company and within it, and actively listened to feedback — and took actions or steps forward to take action on that feedback — these types of conversations would be far shorter and to the benefit of every investor,” said Jessica Correnti, Executive Vice President, Distribution and National Accounts at Capital Square.
November 19: Be a Hero! Save Your Client’s Taxes with DSTs
Fred Hubler, CEO and Chief Wealth Strategist at Creative Capital Wealth Management Group, and a panel of experts explored Delaware Statutory Trusts (DSTs) and their role in modern portfolios. For Josh Hoffman, President, Managing Director, Due Diligence and Marketing at Bluerock, DSTs are all about preserving generational wealth.
For real estate investors, that means tackling the Four Ts: tenants, toilets, trash, and time, Hoffman said. Because the Ts become more of a hassle as investors near retirement age, DSTs are a turnkey solution that can “monetize the value of their real estate in a passive ownership structure … and set them up to have tax-efficient income streams,” he added.
Don’t miss out on future educational opportunities! Explore our calendar of upcoming webinars. Become a member today and get access to all previous virtual conversations.
