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Financial Hedging Should be Encouraged Globally, says AAA
Financial Hedging Should be Encouraged Globally, says AAA
News from Canada this week that the country's Alternative Investment Management Association (AIMA Canada) panel has been recommending hedging of investments, has prompted Alternative Asset Analysis (AAA) to endorse the move.
Mass,
Boston,
United States
(pr4links.com)
01/04/2011
Boston, Mass, April 01, 2011 -- News from Canada this week that the country's Alternative Investment Management Association (AIMA Canada) panel has been recommending hedging of investments, has prompted Alternative Asset Analysis (AAA) to endorse the move.
The alternative investment advocacy group says it is encouraged by AIMA Canada's comments and has added that financial advisers the world over need to be promoting alternative asset classes and the proper hedging of investments.
Alternative assets are those that form part of an investment portfolio but are not traditional assets, such as stocks and shares. This can include anything from real estate and commodities to foreign currencies and tangible assets like collectibles and forestry.
As they do not usually follow the performance of stock markets, they are useful in diversifying an investment portfolio to spread risk in a volatile economy. Alternative investments perform in very different ways, but investing in a range of traditional and alternative asset classes is recommended in today’s economic climate.
The importance of promoting a wide range of asset classes was the primary issue being discussed at the AIMA's Toronto-based event this week. As global markets face a gruelling set of challenges and national debt continues to rise in many countries, the hedging of investment portfolios is growing in importance.
Many of the experts speaking at the event in Toronto expressed concerns about massive debt levels held by developed countries, including the UK, while others cited the ongoing quantitative easing as another reason to fear traditional asset classes over the coming few years.
The AAA – http://www.alternativeassetanalysis.com – is now urging financial advisers to consider the importance of looking at alternative assets such as commodities, forestry, precious metals or even artwork. These assets become increasingly attractive when the world's economies are faltering and traditional assets are volatile.
In recent years, timber has outperformed stocks, commodities and bonds and delivered average returns on investment of 16 per cent between 1987 and 2006. Investing in trees provides a tangible asset that can withstand market volatility. Michael Edwards of AAA said, "investment in forestry is among the most flexible of alternative asset options as forestry managers can simply choose to leave trees to grow until market conditions are perfect for a sale."
AAA says it has become easier to invest in alternative assets with management firms like The Blackstone Group – http://www.blackstone.com – and Greenwood Management – http://www.greenwood-management.com – offering more choice to financial advisers and their clients in the UK, the US and all over the rest of the world.
Contact:
Michael Edwards
Alternative Asset Analysis
71 Commercial St
Boston, Mass 02109-1320
617-898 6317
info@alternativeassetanalysis.com
http://www.alternativeassetanalysis.com
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