Real Assets Adviser

November 1, 2016; Vol. 3, Number 11

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From the Current Issue

Southern Exposure: Storytelling Hatteras Funds CEO David Perkins is getting a second bite at the apple

People’s lives are motivated by one of two things — inspiration or desperation. David Perkins, the author of that sentiment, is well acquainted with both. The founder and CEO of Hatteras Funds can recall the desperation of going to his knees and praying for manna from heaven, as well as the inspiration of realizing what he wanted to do with the rest of his life, the humiliation of living in an in-law’s mobile home, and the exhilaration of selling his company for $40 million, only to watch the buyer run his crowning professional achievement into the ground.

Where Index Investing Is Headed: The second of a two-part series about the confluence of factors that favor the rise of index investing

While the overall asset management industry has been growing along with passive investing, the share of traditional active funds has been declining, especially those operating in the developed markets of large-cap equity and government bonds. The global AUM share of traditional active products has fallen sharply over the past decade, from 60 percent in 2003 to around 40 percent at the end of 2014. Accompanying this dramatic change in flows has been increased speculation on the future of active management and the dynamics of active and passive investing. 

The Autonomous Vehicle Dividend: Why peak car ownership in 2020 is not farfetched

The rise in interest in autonomous vehicles is just one indication that the era of high numbers of personally owned vehicles in the United States is coming to an end. A report by the Rocky Mountain Institute explores the possibility that a new mobility system will emerge in the next few years that is superior to our existing system in almost every way.

REITs in the Spotlight: More than ever, they are an effective way for individual investors to access global real estate

Sept. 1 marked an important milestone for the real estate investment trust (REIT) industry. Effective that date, real estate became the 11th sector in the Global Industry Classification Standard — the first new sector since Standard & Poor’s and MSCI formulated GICS in 1999. Here’s how MSCI explains the GICS addition: “With the creation of the new Real Estate Sector, we acknowledge its growing importance in today’s global economy. This change will elevate its position from under the Financial Sector, recognizing Real Estate as a distinct asset class and a foundational building block of a modern portfolio.”

Less Liquid, More Premium: Why your clients

Whether the goal is to achieve capital preservation or aggressively generate growth, a successful retirement savings plan requires establishing an appropriate asset allocation strategy. Putting all your retirement funds into a savings account can be safe, but in order to build meaningful wealth, investors need to find an account that can deliver a return above the current rate of inflation. On the other hand, investing in assets other than cash can be an effective way to outperform inflation and generate regular income. Alternative investments, one such asset category, have the potential to generate attractive returns with the added benefit of protecting a portfolio from market volatility.

A Post-Oil Middle East: Investors in the energy-rich region are having trouble finding value

With all that is happening in the world — the U.S. election, the Brexit vote, various terrorist incidents, speculation about will she or won’t she raise rates at the Fed and other concerns — oil seems to have been pushed down the priority scale of market-influencing issues. The price of West Texas Intermediate has varied between the low and high $40s for months as investors have reacted to news about restrictive fracking legislation, Saudi Arabian production, demand in a slowing world economy and the liquidation of the huge crude inventory overhang.

Time and Place: Too many people think the world is in decline because they make these two critical mistakes

Many years ago, I got in a tangle with a neighbor about the world’s state of affairs. I was living in Portland, Ore., at the time, and Linda and her husband lived across the street. Weekend mornings we would often have coffee together. I admired Linda for being an assiduous reader of the daily newspaper, which she read cover to cover each day and was always well informed about all that was going down in the United States and the world.

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