download the 2013 Industry Report
"Successful achievement of CII CPD accreditation indicates that Intelligent Partnership’s AiR met the standards expected by the CII in the areas of transparency, quality and professional development. The CII is pleased to recognise Intelligent Partnership’s commitment to professionalism through this CII CPD accreditation."Tamsin Mills, Director of Accreditation Services at the CII
"We have been using Intelligent Partnership to train our advisers and introducers since they started offering their alternative investment masterclass in 2011. Their regular reports and training give us the peace of mind that we are up to date and can make informed decisions when reviewing or recommending these types of investments."Anthony Frost, IFA at Choices
"FEIFA recognise the need for balanced, informative and regularly updated research on different asset classes. The AiR reports from Intelligent Partnership are an extremely valuable resource for any adviser researching the alternative investment sector and the various products and strategies in the market; we are pleased to be able to make their reports available to our international membership base of financial advisers and wealth managers."Paul Stanfield, Chief Executive at FEIFA
"The AiR report is a great document and I am glad that you had the opportunity to talk through it and share it with the delegates. There is a lot of negativity about alternatives given the capital adequacy impact, UCIS mis-selling and scams that get reported upon. Given the place that they have in a portfolio for the right person, it will be crucial to have this sort of information to hand if that sector is to drive through the current issues."Andrew Roberts, Chairman of AMPS
"The AiR reports from IP are well put together, balanced and informative. As a financial planner myself and advocate for more and better education they explain the alternative investment sector clearly and simply, I would urge other financial planners to read them as part of their whole of market research."Neil Bailey, Director at Fortitude Financial Planning Ltd
Intelligent Partnership has published AiR 2013 - the first comprehensive and accredited Industry Report on Alternative Investments, with a focus on real assets marketed to UK retail investors. Topics covered in this report include the growth in alternative investments, the changing regulatory landscape, distribution, the role of alternative investments in a portfolio, the importance of due diligence and a detailed review of the current trends in the sector.
This report also includes detailed analysis of the most common alternative investment sub-sectors which includes property, land, forestry, energy, farmland, precious metals and collectibles.
This is the first comprehensive report looking at the alternative investment sector with a specific focus on retail investors. “Alternative” is a very broad term which is often used in the investment world to categorise any asset class that isn’t part of the mainstream public markets such as equities, funds or bonds. In this report the focus is on directly held alternative investments which can include arable farmland, bio-fuel crops, hotel & resort property or classic cars for example.
The alternative investment marketplace has grown rapidly in recent years, from around 50 alternative investments in 2008 to well over 250 today. We believe the growth in this sector is unsustainable and 2013 is likely to be a year of significant change in the sector, largely led by promotional restrictions and intense scrutiny from the Financial Conduct Authority (FCA).
The alternative investments covered in this report can potentially provide a number of benefits to investors. Real assets are often a hedge against inflation as their price is likely to rise along with inflation, as is often seen with house prices. They may also be income generating assets which can offer long-term, stable and strong returns. Alternative investments can also provide diversification and uncorrelated returns from traditional stock market assets, as has been seen with gold over the last 10 years.
There are a number of risks to investors, and advisers or promoters need to be aware of these when recommending directly held alternative investments. These can include overly optimistic and unsubstantiated claims in marketing literature, liquidity issues and the lack of a secondary/re-sale market and also the fact that the majority of these investments are unregulated assets. This means that they can be promoted by unregulated sales people and investors have no recourse to the Financial Services Compensation Scheme (FSCS) or Financial Ombudsman Service (FOS).
The alternative investment sector is extremely wide ranging and this report aims to educate the reader and aid their understanding of the sector. This includes covering the benefits and risks of investing into directly held alternative assets and looking at the importance of thorough due diligence when assessing any investment. Due diligence should be conducted on the sector, the product, the product provider and any counterparties in order to fully understand all of the risks associated with the investment.
This report is primarily aimed at financial advisers looking to further educate themselves or broaden their investment offering post RDR, or who have clients that have done or are considering investing into alternative investments. The content should also be relevant to promoters of alternative investments, product providers, SIPP operators and industry advisers and practitioners.
In order to view and download a complimentary copy of the industry report you must first register with Intelligent Partnership. If you have already registered with us please provide your email address below. Thanks for registering and we very much welcome your feedback on the report.
Your data will be held by us in a secure environment, treated confidentially and at no point shared with any third parties. You may opt out of receiving further industry specific content from us by clicking unscubscribe in one of our emails.
Intelligent Partnership has achieved accredited status for AiR 2013 from the Chartered Insurance Institute (CII), Personal Finance Society (PFS) and the Institute of Financial Planning (IFP). Where relevant, readers of AiR can claim one CPD hour (Continuing Professional development) towards their CPD scheme for each hour spent on the report, the CPD hours claimed should reflect the length of time studying the material. Achieving CPD accreditation for AiR as well as our alternative investment master class training, demonstrates a commitment to delivering only balanced, informative and high quality content to our partners.
Intelligent Partnership actively welcome feedback, thoughts and comments to help shape the development of this industry report, with a particular interest on the topics readers believe could be covered in more detail in future reports.
The aim is to make this an annual report, compiled through the conducting of research and surveys with providers, promoters and practitioners within the alternative investment industry. Greater participation, transparency and disclosure from industry participants should help foster best practice and drive out poor practice
As a follow up to our acclaimed industry report and as part of the AiR series Intelligent Partnership has published individual reports on specific investment sectors; sectors covered so far include Purpose Built Student Propery published in June, Energy and Renewables in August and Hotel and Resort property in October; with Forestry and Commodities also due for publication over the coming months.
Each sector report includes a market update, demand and supply factors, investment considerations as well as activity and potential in the sector. Alongside this research is our Alternative Investment Register, within which we list and detail all of the investments we have been able to collect data for.
More information on our reports is available on our website.