RMB Global Markets Fund Solutions
RMB alternative (non-traditional) investment solutions include a combination of the following:
Alternative assets (out-of-the-ordinary assets)
Our solutions sometimes include assets that don’t fall into one of the three traditional asset classes (equities, bonds or cash). We use traditional assets in different ways and include assets such as high-quality credit, hedge funds and commodities. Alternative assets were historically the sole domain of institutions but are now more widely available. The appeal of these assets has always been their low correlation to traditional asset returns. By combining traditional with alternative assets, investors can receive better risk adjusted returns over time.
Capital guarantees (protecting downside risk)
Capital protection features are applied to many of our investment solutions to manage risk by protecting capital under adverse market conditions. Protection against large losses over time can contribute to your peace of mind, the stability of your portfolio, and the positive compounding of your returns. These guarantees can either be overlaid into or incorporated within a solution — and funds are available against these guaranteed products at short notice.
Our alternative investment solutions are provided by way of a performance linked investment account (PLIA). Cash is deposited into the account, and we provide you with a return linked to the reference assets you've chosen. A PLIA is structured in a transparent, flexible and cost-effective way to meet your unique financial goals.
Access to funds
As a bank, we can provide finance against our guaranteed investments. In the event of short-term cash flow needs, you can borrow against your investment without compromising your longer-term return objectives and without incurring breakage fees.
Changing investor trends towards alternatives
The turmoil and regulatory changes following the 2008 - 2009 global financial crisis caused investors to adjust their behaviour. They began looking for new ways to achieve growth and better methods to protect their capital in the event of another market crash. One of these ways was to invest in alternatives. RMB is an established niche provider of alternative investment solutions. Global trends suggest that 15% - 30% of your portfolio should be allocated to alternatives and it is estimated that 22% (i.e. US$22.7trillion) of global assets under management will be allocated to alternative assets by 2020.
Alternative assets provide uncorrelated, less volatile returns
Alternative assets fall outside of the definition of the traditional asset classes of equities, bonds and cash. Traditional assets are used very differently within alternative investments and their returns are uncorrelated to market performance. Alternative assets typically include hedge funds (which use financial instruments to protect investors from loss of capital). Alternative asset returns are therefore "smoother".