Latest news with #private market investments
National Post
3 hours ago
- Business
- National Post
Empower Survey Reveals Growing Advisor Support for Private Market Investments in Retirement Plans
Article content While diversification and return potential drive interest, 2/3 say greater ERISA/regulatory clarity is needed Article content GREENWOOD VILLAGE, Colo. — A new survey today from Empower uncovers significant advisor interest in bringing private market investments into defined contribution portfolios. Article content Article content Empower's July 2025 survey of financial advisors found that 68% already utilize private market investments—including private equity, private real estate, and private credit—primarily in wealth-advised or high-net-worth accounts. Notably, 58% of advisors who utilize private market investments today would recommend them within retirement plans. That figure jumps to 75% among advisors who also serve pension or defined benefit plans, and 43% of advisors overall, signaling growing interest. Article content 'Private markets are not a niche corner of the investment landscape,' said Edmund F. Murphy III, President and CEO of Empower. 'With most U.S. companies privately held and trillions of dollars from individuals already invested, expanding access to these markets through defined contribution plans presents a significant opportunity to enhance long-term retirement outcomes. Advisors have a crucial role to play in responsibly guiding that evolution.' Article content 'Aligning the 401(k) system to private markets investing normalizes the U.S. retirement system with the rest of the international and defined benefit investing universe,' said Murphy. Article content According to the survey of advisors, the top perceived benefits of private market investments include: Article content However, advisors also cited liquidity (68%), fees (48%), and investment complexity (33%) as the main challenges to broader adoption. Importantly, 66% of advisors indicated that greater ERISA/regulatory clarity would increase their likelihood of recommending private markets in retirement plans, signaling a readiness to engage once the policy environment evolves. Article content 'As regulatory guidance develops, we see advisors playing a pivotal role in helping plan sponsors evaluate private investment options,' Murphy added. 'Professionally managed accounts and prudent exposure limits can help mitigate risk while offering retirement savers access to a broader investment universe.' Article content Empower believes advisors are well-positioned to support the responsible integration of private market investments into defined contribution retirement portfolios, supporting participants in their pursuit of long-term financial security. Article content In May of 2025 Empower launched a new program that will pave the way for private market investments to be included within defined contribution retirement plans. Article content Private investments offered through seven top asset managers may be implemented through collective investment trusts (CITs), providing limited exposure to diversified pools of private equity, private credit and private real estate, a structure that is designed to provide liquidity protection and reduced fee exposure. Article content This landmark initiative is designed to provide individuals with access to a broader range of investment options, enabling them to further diversify their portfolios and potentially maximize their retirement savings. Article content Related News: Article content About Empower Article content Recognized as the second-largest retirement services provider in the U.S. 1 by totalparticipants, Empower administers more than $1.8 trillion in assets for 19 million investors 2 through the provision of retirement plans, advice, wealth management, and investments. Connect with us on Facebook, X, LinkedIn, TikTok, and Instagram. Pensions & Investments DC Recordkeeper Survey (2024). Ranking measured by total number of participants as of December 31, 2023. As of June 30, 2025. Assets under administration (AUA) refers to the assets administered by Empower. AUA does not reflect the financial stability or strength of a company. _____________________ Empower refers to the products and services offered by Empower Annuity Insurance Company of America (EAICA) and its subsidiaries. Article content 'EMPOWER' and all associated logos and product names are trademarks of Empower Annuity Insurance Company of America. Article content The information contained herein is being provided for discussion purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy or sell securities. Article content Article content Article content Article content Article content Contacts Article content Media contacts Article content Article content Stephen Gawlik – Article content Article content Article content Article content
Khaleej Times
28-07-2025
- Business
- Khaleej Times
Can gold be classified as an 'alternative asset' within an investor's portfolio?
In recent years, institutional investors have increasingly turned to alternative assets in pursuit of higher returns, broader diversification, and insulation from traditional market cycles. Yet, these benefits often come with trade-offs — namely, limited liquidity, delayed valuations, and vulnerability to economic shocks that may not be immediately priced in. Against this backdrop, a recent World Gold Council report suggests a rethinking of gold's role—not just as a traditional safe haven, but as a strategic component within the evolving landscape of alternative investing. While gold is not always classified as an 'alternative asset,' it possesses characteristics that make it uniquely suited to complement such portfolios. It is highly liquid, exhibits low correlation with most asset classes, and has a proven track record of resilience during periods of systemic stress. These attributes position gold as a natural counterbalance to the illiquidity and opacity that often characterise private market investments. To quantify gold's value in a diversified portfolio, the report employs a robust Monte Carlo simulation using 20 years of historical data. The findings are clear: portfolios that include a 5–8 per cent allocation to gold consistently outperform those without it in terms of risk-adjusted returns. Gold reduces volatility, cushions drawdowns, and enhances overall portfolio efficiency. For example, in a 20-year simulation, portfolios with gold experienced a maximum drawdown of –38.8 per cent, compared to –43.2 per cent without it. Even in shorter timeframes, gold's inclusion improved Sharpe ratios and reduced downside risk. 'To investors, public and private markets exist along a continuum of liquidity, returns, and volatility. The difference is one of timing and access. Gold exists in this continuum, not because it mimics public or private assets, but because its attributes bridge across both,' said Marissa Salim, Senior Research Lead, APAC at the World Gold Council. The analysis goes further by stress-testing portfolios under four macroeconomic shock scenarios: rate hikes, inflation spikes, equity crashes, and credit spread widening. In every case, gold helped reduce portfolio losses by 50 to 90 basis points. These results underscore gold's role as a reliable shock absorber—especially when both traditional and alternative assets come under simultaneous pressure. But gold's value extends beyond numbers. The report introduces the concept of a 'portfolio continuum,' where public and private markets are not seen as binary choices but as points along a spectrum of liquidity, returns, and volatility. In this continuum, gold serves as a bridge. It trades with the immediacy of public markets yet offers the defensive stability often sought in private strategies. This duality makes gold particularly valuable in today's environment, where private market liquidity is tightening and exit timelines are lengthening. Indeed, the report highlights a notable slowdown in private market deal activity and IPOs, which has created a bottleneck in capital redistribution. Innovations like GP-led secondaries and continuation funds are emerging to address these challenges, but they do not eliminate the underlying issue: capital remains locked for longer, and access to cash is less predictable. Gold, by contrast, provides immediate liquidity and flexibility—qualities that are increasingly scarce in private markets. In essence, gold is not a replacement for private credit or equity, but a strategic complement. It addresses the blind spots of alternative investments—liquidity constraints, valuation lags, and delayed responses to market stress. As portfolios become more complex and span a wider range of asset classes, gold offers a quiet but powerful form of stability. It is the connective tissue in a portfolio that must perform across cycles, across asset types, and across market regimes.
Yahoo
11-07-2025
- Business
- Yahoo
Why SoFi Technologies Shares Are Climbing Higher
July 11 SoFi Technologies (NASDAQ:SOFI) jumped about 3.7% on Thursday, hitting a fresh 52-week high of $21 after unveiling a new initiative to broaden access to private market investments. Warning! GuruFocus has detected 7 Warning Sign with SOFI. Through partnerships with asset managers including Cashmere, Fundrise, and Liberty Street Advisors, the digital finance platform is allowing members to invest in high-profile private firms such as OpenAI, SpaceX, and Epic Games. The entry point has been set as low as $10, significantly lowering the typical barriers to entry for retail investors. The move marks a broader push by SoFi to grow its alternative investment offerings. The company has also introduced new funds from ARK, KKR (NYSE:KKR), Carlyle (NASDAQ:CG), and Franklin Templeton (NYSE:BEN), expanding user access to private credit, real estate, and pre-IPO firms. In addition, SoFi recently revamped its robo-advisory platform in collaboration with BlackRock (NYSE:BLK), giving members access to automated portfolios that include alternative assets. This development comes as retail interest in private market opportunities grows. Competitor Robinhood Markets (NASDAQ:HOOD) has also started offering tokenized private equity shares in Europe. With demand rising, SoFi's latest offering may help it stand out in the increasingly crowded fintech space. Based on the one year price targets offered by 16 analysts, the average target price for SoFi Technologies Inc is $14.94 with a high estimate of $20.00 and a low estimate of $6.00. The average target implies a downside of -28.76% from the current price of $20.97. Based on GuruFocus estimates, the estimated GF Value for SoFi Technologies Inc in one year is $11.50, suggesting a downside of -45.16% from the current price of $20.97. This article first appeared on GuruFocus. Sign in to access your portfolio
