Alternative Investments for Associations

Alternative Investments for Associations

finance By: Dennis P. Gogarty

Investments apart from traditional stocks and bonds can look promising to associations looking to bolster their reserves. But the potential for higher returns also means risks increase as well. A trusted fund manager and strong board oversight are essential when considering these assets.

You may have heard that the outlook for traditional stocks and bonds is bad. You're told that the recent financial crisis has brought about a "new normal" of slow growth and below-average stock-market returns. Interest rates are at all-time lows, and the bond bubble we've enjoyed for 20 years is due to burst. Either your organization or your peers have moved a portion of the organization's investment portfolio into alternative assets. If you haven't yet moved into alternatives, should you? If you have, how do you know if it was a good decision? ...