The Collateral Group seeks partnerships with fee-only financial advisors considering alternative investment solutions for their clients. During periods of heightened volatility, financial advisors are challenged to find stable income sources that can provide diversification to a portfolio of traditional asset classes. Well-positioned real estate with a high level of protective equity can offer above-average income with a low correlation to stocks and bonds.

Just a decade ago, an advisor’s typical asset allocation model consisted of three primary asset classes: stocks, bonds, and cash. Since then, alternative investments, which include hedge funds, commodities, venture capital as well as real estate and private equity, have emerged as a fourth major asset class. Alternative investments can help diversify, stabilize and enhance the investment returns of a traditional stock and bond portfolio.

Proper portfolio structure requires a comprehensive understanding of each investors risk tolerance, investment objectives, tax position, income and liquidity needs. Financial advisors with this understanding are best suited to make recommendations that will best serve their clients. At the Collateral Group, we believe independent advisors who operate on a fee-based platform are best positioned to leverage the solutions we offer.