Broker Check

Alternative Investments

Oz Investing Services (OIS) through its affiliation with Cetera Advisors offers investors access to a broad range of alternative investments.

Offerings are in different asset categories and holding structures and will vary at any given time depending on availability at the time of investor inquiry.

Alternative investments can compliment existing core model portfolio strategies or enable investors to exercise high conviction plays on a one off or concentrated basis.

However, alternative investments are not appropriate for all investors; and increased due diligence should be conducted prior to considering any alternative investment.

Alternative investments are considered speculative and involves a high degree of risk, including the risk of substantial loss of investment and investment in alternative investments is not suitable for all investors.

Some general benefits and drawbacks applicable to most all alternative investments include:

Benefits

  • Can have low or zero correlation to conventional assets
  • Can increase total portfolio diversification
  • High potential returns
  • More favorable tax impact to investor
  • Can significantly outpace inflation or capital markets returns

Drawbacks

  • Typically, very low liquidity
  • Typically, very low liquidity
  • Usually, higher risk compared to conventional investments
  • Valuation can fluctuate significantly, and can be difficult to calculate
  • Can be more complicated to understand
  • Normally, less regulatory protection for investors

Two useful learning resources investors can access to learn more are:

OIS encourages investors to explore whether alternative investments might have a place in their total investment portfolio and offers the following “rules of thumb” for consideration.

  • Carefully review the prospectus, offering memorandum, and other documents on any alternative investment being considered to ensure understanding of potential return, risk, costs, and investor objective to have investment in the total investment portfolio.
  • Do not invest more than 20% of the total investment portfolio in alternative investments.
  • Do not invest money that could potentially be needed prior to, or more than, the liquidity provisions and schedule listed in the investment’s offering documents. Typically, 5-year minimum.
  • Ensure there is at least one clear purpose for making the investment and that it is complimentary to the total investment portfolio and/or the overall financial strategy.
  • Discuss with your advisor in detail, beyond affirming suitability requirements, if alternative investments as a category add enough value to be considered.
  • Assuming suitability is met, and the investment compliments the total investment portfolio, make an investment largely based on agreement with the proposed investment’s investment thesis and core purpose, and not solely on a potential side effect such as tax treatment or projected distribution schedule.

Available alternative investment offerings listed below are as of period ending 12/31/2022.

Investments in securities do not offer a fix rate of return. Principal, yield and/or share price will fluctuate with changes in market conditions and, when sold or redeemed, you may receive more or less than originally invested.  No system or financial planning strategy can guarantee future results.  Therefore, no current or prospective client should assume that future performance or any specific investment, investment strategy or product will be profitable. Alternative investments are considered speculative and involves a high degree of risk, including the risk of substantial loss of investment and investment in alternative investments is not suitable for all investors.

Questions?

If you have any questions or would like to explore potentially working together now or in the future, please contact Oz Investing Services at your convenience. Thank you.

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