3 ways Elysys family office software can support alternative investments
In the past custodians would defer to investing in traditional assets, such as stocks, bonds and mutual funds. But now alternative investments are on the rise.
The term "alternative investments" is as broad as it can be. In fact, there are as many different definitions of the term as there are people using them. In general, alternative investment classifications refer to those non-traditional investment options that have been growing in popularity over the last few years. These include hedge funds, real estate and other tangible properties such as precious metals or diamonds. Also included in this group are a number of new offerings that have recently come to market including Treasuries, ADRs and even fine wines. Although alternative investments were first introduced into the markets starting back in the 1950s, they never gained much traction until more recently. Now, these options represent a major portion of assets under management by institutional entities such as pension funds.
According to a recent report by Preqin, alternative investment assets have quadrupled in size over the last decade and now account for more than one-third of all institutional investment assets. So, what's driving this growth?
Here are 4 reasons alternative investments are taking off:
- Diversification: Alternative investments can provide diversification benefits by reducing exposure to traditional asset classes such as stocks and bonds.
- Liquidity: Many alternative investments offer liquidity options that are not available with traditional assets.
- Returns: Many alternative investments have generated higher returns than traditional assets over the past few years.
- Transparency: Alternative investments typically offer greater transparency than traditional assets.
Because alternative investments are becoming more popular, there are more options available now than ever before. This proves to be a complex and difficult challenge for family offices to manage. Outdated family office software or manual solutions to managing these just can’t keep up with the requirements needed to manage this ever-growing list of alternative investments. The best solution is a trusted partner who knows what it takes to apply technology in innovative ways across the firm's complex business operations.
Elysys is the industry's leading provider of financial software and services supporting the management of alternative assets, including hedge funds, private equity, real estate investment trusts (REITs), commodities and venture capital.
Our team takes a collaborative approach to developing solutions that solve our clients' most pressing challenges and meet their ever-changing technology needs. The top 3 requirements we see from our clients who manage alternative investments are:
- Reporting across all alternative asset classes – A software with a single, aggregated and structured source of data means the reporting and analysis task is made easier from day one. Family offices see a competitive benefit when their software allows them to drill down to detailed transactions when necessary.
- Minimize the regulatory and compliance overhead across all segregated accounts. They require a platform that complies with a variety of accounting standards and provides specific functionalities across a number of jurisdictions.
- Real-time performance metrics allow for improved forecasting.
Increase your financial visibility and performance, by leveraging the family office software to make instant, data-driven decisions.
Elysys has been trusted by family offices, investment managers, and fund administrators to provide automated business processes for alternative investments since 2006. Our real-time alternative investment software can help you automate complex reporting, increase compliance efficiency, navigate the strict regulations of international funds, deliver professional trade analysis to your clients, keep an eye on counterparty risk—all while meeting your robust reporting standards.