Followers of the West Coast Blog know that we are fans of SAT-level vocabulary words. Today’s blog is no exception: you will be seeing “reinvigorate” appear throughout this article. A quick Google News search will reveal that reinvigorate appears in articles on many topics, but its particularly fresh in my mind for a couple of reasons. One of those reasons is because of the recent Indianapolis 500 race; the other reason is West Coast’s bread and butter of the Alternative Investments, particularly Senior Life Settlements.

First, let’s discuss how the word reinvigorate applies to the 2019 Indianapolis 500. The IndyCar Series, which participates in the Indianapolis 500, began the season with multiple reinvigorating factors, including a new broadcast partner (NBC), a new sponsor (Japanese telecom company NTT), and a relatively new race CEO working to reinvigorate the race’s brand (Mark Miles). These new factors produced evidence of reinvigoration during and after the race:  the 500 featured A-list celebrity attendees and the tv broadcast featured a 15% ratings increase from the 2018 race broadcast.

If a century-old race can find multiple ways to reinvigorate itself, why can’t the investment sphere? It’s funny you ask, as Alternative Investments have already reinvigorated multiple fundraising efforts, including educational endowments and state pension funds. Both Yale University and Princeton University have high exposure to Alternative Investments within their respective endowments funds, which has led both universities to lead the Ivy League in recent endowment fund gains. The state of Michigan has also looked to Alternative Investments as a way to reinvigorate their state’s pension funds by investing nearly $1.1 billion in Alternative Investments in Q3 of 2017.

Alternative Investments, including Senior Life Settlements, also reinvigorate investments due to their lack of market correlation. Is this too good to be true? Well, no—on a risk adjusted basis, Alternative Investments satisfy both income targets and risk tolerance. The positive news regarding the lack of correlation and other factors has spread to investors, as 83% are interested in Alternative Investments and their ability to tamper investor and advisor concerns.

While there is a great amount of interest in Alternative Investments, there’s also a knowledge gap regarding this asset class:  67% of Advisors admit that they lack understanding of Alternative Investments and are perplexed on how to effectively utilize them. The West Coast team serves to reinvigorate the perception of Alternative Investments by sharing decades of experience and knowledge on the subject. West Coast is aware of how the Alternative Investment sphere is expected to grow to $150 billion over the next few years and how non-correlated asset classes increase diversification away from market risk. We’ve even seen surprising results regarding Alternative Investment performance during recent bear markets. If this asset class yields surprising results during robust market times, imagine how it can work to stabilize returns and reduce risk during down markets.

Now that we’ve discussed how many factors can reinvigorate the Indianapolis 500 and investments, you may see how many factors can reinvigorate your investments and returns for your clientele. The West Coast team is happy to discuss how Alternative Investments can reinvigorate your unique investments needs. If you’re ready to reinvigorate your Advising practice, we should talk. For more information, please feel free to either schedule a call with us, call West Coast Settlements at (657) 254-4300 or send an email to info@westcoastsettlements.com.