Another problem we see in the marketplace is most of these assets are illiquid, which is one of the biggest objections we find with investors in this space. Using our platform, we have built-in secondary market capability that can dramatically enhance the liquidity potential of those investments while also giving our clients the tools to navigate the complexities of the regulatory environment.
Hortz: How do you see that your innovation efforts will potentially impact alternatives in different areas of financial services like retirement plans?
Quarshie: Today, the defined contribution marketplace historically has had little to no access to alternative investments, which has dramatically reduced the results for defined contribution investors. However, the Department of Labor’s recent guidance on the issue of alternative investments in DC plans has only spurred additional momentum for mass market investors to access this asset class.
Using the RealBlocks platform, we've improved the connectivity between alternative investment managers and plan sponsors and their consultants to access these investments by providing the daily valuation, the daily liquidity critical to success in this marketplace. These improvements in technology and innovation have the potential to really help to grow the number of investors that are able to access these types of investments.
Hortz: Any recommendations or further thoughts for alternative managers and financial advisors you would like to share about how this new alternative marketplace?
Quarshie: We know that the expanded opportunities to connect with this expanded global alternatives market comes with questions on new ways of operating and engaging clients. To speed up the learning curve required to take full advantage of this opportunity, we welcome advisors and alternative managers to visit our website and reach out to us so we can walk you through this new landscape and bring you up to speed on how to take advantage of this expanding asset class.
Institute for Innovation Development is an educational and business development catalyst for growth-oriented financial advisors and financial services firms determined to lead their businesses in an operating environment of accelerating business and cultural change. We position our members with the necessary ongoing innovation resources and best practices to drive and facilitate their next-generation growth, differentiation and unique client/community engagement strategies. The institute was launched with the support and foresight of our founding sponsors—Ultimus Fund Solutions, NASDAQ, Pershing, Fidelity, Voya Financial and Charter Financial Publishing (publisher of Financial Advisor magazine).