Dennis McCabe, Managing Director, Head of Morgan Stanley Investment Management RIA Alternatives Investment Distribution, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss investment and educational opportunities in alternative investments.
An increasing number of investors are adding alternative investments to their portfolios to dramatically expand their opportunity set. As an example, there are 730,000 US companies, of which only 4,000 are publicly traded. Twenty years ago, companies might have gone public after 5 years, but today they are staying private longer, with the average age of a newly listed company at 14 years. The result is that companies may experience their most meaningful growth while they are still privately held.
Investors have more options when they combine alternative investments with tax-managed strategies. While alternative investments are less liquid, they may offer excess returns through an illiquidity premium unavailable in publicly traded holdings. Downside risk may be reduced when private market strategies have relatively low correlations with publicly traded holdings and with other private market strategies.
McCabe notes that the most common question received from clients and advisors is regarding education on alternative investments. To address this need, Morgan Stanley Investment Management launched the Alternatives Investing Center as a public portal where investors can access content and thought leadership. The site provides introductory material and in-depth proprietary research.
WEBCAST – Alternatives Investing Center: MSIM’s Approach to Allocating to Private Markets
The MSIM’s Approach to Allocating to Private Markets session discusses our proprietary Private Markets Asset Allocation Framework (PMAAF), designed to help investors think about how to allocate their dry powder across private markets and cycles.
Learning Objectives:
- Understand the challenges investors face when building a private markets allocation
- Outline our approach to forming medium-term signals across private markets asset classes
- Examples of views expressed in portfolio positioning
Accepted for 1 CFP® / IWI / CFA CE Credit
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