The global equity markets have been in a state of crisis for three years, causing many investors to begin looking for investment alternatives in the last few months. Now, after several years of a bear market, the focus is no longer exclusively on maximizing potential earnings, but also on investment risks. Investors, who, after painful experiences with the stock market, are now looking to avoid any risk, can only count on the so-called risk-free interest rate, which is currently at an all-time low. What is left at the end of the day, once inflation, taxes and costs have taken their toll, is nothing but maintained purchasing power.
In light of these unsatisfactory circumstances, many investors are looking for innovative investment products that allow them to generate attractive returns, even in stagnating markets, while taking into account limited risks. Our research shows that high net-worth individuals and institutional investors are attracted to Hedge Funds because of diversification benefits and very different to, standard portfolio mix of equities and fixed-income bonds, risk/reward ratios. However, investors are discouraged by perceived risks and regulatory complexities. As a result, Capital guaranteed products are being seen worldwide, and the market for these alternative investments growing rapidly.
We are, at Preferred Financial Management, committed to servicing institutional and private clients, to meet their specific needs in the Structured Products arena.
