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AltsDb and Alts Expo were recently featured in an article published in the digital edition of PLANADVISER magazine. PLANADVISER is a print and digital media publication targeted to retirement plan advisors.
The article, Education Options for Alternative Investments Expand, discussed educational initiatives from various organizations in the alts industry, including initiatives from AltsDb, the CAIA Association, CAIS, Franklin Templeton, and iCapital.
The need for advisor education is greater than ever before, given the significant growth that has occurred in the alts industry in the past several years. AltsDb’s Alts Expo event series was highlighted by author Ed McCarthy as an example of this growth.
[AltsDb co-founder Andy] Hagans says AltsDb was founded in the fourth quarter of 2021 and traffic to the site started spiking in 2022’s first quarter. He cites attendance at the firm’s virtual 2022 Alts Expo in early December as an example of the growing interest in alternatives. “We were expecting 400 to 500 participants,” he says. “We had nearly 600 participants register, so that definitely exceeded expectations.”
Advisor education is a considered a growth opportunity for the alts industry, but familiarity with alternative investments is also important from the advisor’s point of view. Specifically, the article touches on why advisors need to understand the underlying holdings of any alternative investments that are owned by their clients.
“Sponsors should have a working understanding on what is in their funds, managed accounts, target date products, etc.,” Bowman maintains. “As the main liaison to the client, they are obligated to be able to grasp and effectively communicate the characteristics and risks of each portion of the portfolio.”
Hagans agrees. When things go sideways, as with black swan type of events, that’s when their understanding matters, he says: “If I’m an RIA, especially if I’m a fiduciary, I want to understand what is owned within any underlying fund. And I think with alternatives, they tend to be more complex and there tends to be more of an education gap there.”
Visit https://www.planadviser.com/exclusives/education-options-alternative-investments-expand/ to read the full article, available now on the PLANADVISER website.