More than just selfies and music festivals. | Halfpoint/iStock/Thinkstock
Think millennials are only interested in sexy tech stocks or low-cost ETFs? According to a new study by AMG Funds, the U.S. retail distribution arm of asset management firm Affiliated Managers Group, 70 percent of wealthy millennials are interested in alternative mutual funds and want to know more about the benefits of alternative investing. Eighty-three percent said they are open to a broader approach to investing, compared with only 52 percent of investors over age 35. The millennials surveyed - a sample of 1,000 people aged 18 to 35 years old with at least $250,000 in household investable assets - also indicated that they believe active management is important to portfolio performance and that generating income, a goal typically associated with retirees, is equally important to growth maximization.
Obstacles Keep RIAs From Dipping Toes in Private Equity
A bit chilly. | Multiart/iStock/Thinkstock
While nearly seven in 10 registered investment advisors say their wealthy clients have an appetite for private equity investments, only 27 percent have raised the subject with their clients. Only about a third of RIAs are offering private equity to clients, according to a new survey of 450 RIA firms by iCapital Network. The top obstacle, cited by 85 percent of advisors, was the lock-up period. Nearly eight in 10 advisors said the investment minimums were keeping them from offering private equity to clients. Other top obstacles included having clients with the wealth and timeframe to invest (64 percent), access to high-quality private equity funds (62 percent), and lack of transparency (51 percent). "A small group of advisory professionals are currently helping their wealthy, qualified clients with private equity, meaning that many high-net-worth investors may be under-allocated to illiquid assets like private equity funds and direct investments," the report said.
Riverview Bank Acquires Independent Advisory Firm
Gaining a new vision.
Harrisburg, Pa.-based Riverview Bank has acquired Your Vision Financial Services, an independent financial advisory firm in Palmyra, Pa., the firm announced. Your Vision, run by Jim Krall, will be rebranded Riverview Wealth Management. Riverview is the latest in a string of banks gobbling up financial advisors to boost their wealth divisions. According to the Milwaukee Journal-Sentinel, banks in Wisconsin are also beefing up their wealth management divisions to boost their bottom lines by bringing in fees from higher-income clients. Wealth management divisions also give banks a new client base to offer other services. The strategy can also help banks deepen relationships with business owners who may have loans with them, but not their personal finances.
