Ruth Goodstein, Chief Operating Officer – Wealth Solutions at Macquarie Asset Management joins Keith Black, Managing Director of RIA Channel, to discuss the mainstreaming and democratization of alternative investments.
2022 was a year that most investment professionals would like to forget, with factors such as IPO activity at a 32-year low. The 60/40 portfolio was challenged, and investors turned to alternative investments, some of which had positive returns last year.
“Diversifying with alternatives may provide capital preservation, reduced correlation, provide an inflation hedge, mitigate risk, and help achieve portfolio objectives.” Goodstein is optimistic that “well- chosen alternatives may deliver better risk-adjusted returns regardless of the macro environment like in 2022.”
Endowments and sovereign wealth funds use alternative investments as a key part of their allocation strategies. Both institutional and individual investors have been growing allocations to alternative investments, as evidenced by the doubling of alternative assets from $7 trillion in 2015 to over $14 trillion in 2021, and could rise further to $23 trillion by 20271.
The Wealth Solutions team at Macquarie Asset Management, has pioneered building alternative investment fund structures, such as lower minimum investments, lower investor qualifications and simplified tax reporting, that make these investment opportunities accessible to a greater number of individual investors. Registered funds available to accredited investors may be structured without incentive fees and with potentially greater liquidity than traditional institutional funds.
Macquarie believes that investors need to be educated on alternative investments before making an allocation, so the firm provides educational opportunities across the alternative landscape.
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Ruth Goodstein is Chief Operating Officer of Macquarie Asset Management (MAM) Wealth Solutions, which is focused on empowering high-net-worth investors to invest for long-term success through access to institutional quality private equity, hedge fund, real estate, and infrastructure funds. Goodstein joined MAM as part of Macquarie’s 2022 acquisition of independent investment advisory firm, Central Park Group, where she was chief operating officer. She has more than 25 years of experience in the financial services industry. Prior to joining Central Park Group in 2006, Goodstein served as chief operating officer of Robeco-Sage Capital, an institutional hedge fund-of-funds firm. Before that, she was a senior vice president in the UBS Financial Services Alternative Investment Group, where she was responsible for overseeing product development, product management, and marketing. Prior to UBS, Goodstein was associate general counsel at J.P. Morgan Investment Management. Previously, she worked in global compliance at Bankers Trust Company and as an attorney at Oppenheimer & Co. Goodstein began her career at the law firm of Goodkind, Wechsler, Labaton & Rudoff. She graduated from Cornell University and earned her juris doctor degree from Brooklyn Law School. She has served on several NASD District 10 Committees and is a regular speaker at industry conferences.
- Source: 2022 Preqin Global Alternatives Reports.
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