Harriet Davies
Editor - Family Wealth Report
5 April 2012
Feature
Advisors recognize that offering alternative asset investments through IRA accounts could be a good growth path for their business, but few are onto it yet, according to a new survey from PENSCO Trust Company.
The PENSCO Market Barometer, which polled 1,000 people and 365 high net worth advisors, found that eight in ten advisors say their clients have expressed an interest in investing in alternative assets but only 10 per cent offer that capability.
Advisors also recognized a potential to build wealth through alternative assets, with 82 per cent of advisors expressing an interest in providing this service to clients, the survey found.
Kelly Rodriques, chief executive of PENSCO, said a number of trends were converging to drive this demand. The firm bought the individual retirement account business of Lincoln Trust earlier this year, significantly bolstering its size to over $10 billion in assets under custody.
“We’re seeing fairly significant account opening in the middle of the market,” said Rodriques, referring to the fact the firm’s clientele tend to be high net worth investors, but the demand for alternatives is becoming more widespread. “Part of that is the disappointment in the returns of their 401(k)s,” he added.
