World Economic Forum, Davos 2015 - Emerging trends in financial innovation
World Economic Forum Annual Meeting 2015 in Davos-Klosters, Switzerland – The World Economic Forum is the leading platform for exchanging strategic insights on global economic and social issues. Altex Group actively participates in the discussions on the future of the financial system and growth of the entrepreneurial companies.
World Economic Forum hosted a number of sessions dedicated to finance and economic growth throughout the Annual Meeting in January 21-24, 2015 in Davos-Klosters, Switzerland. In spite of impending risks in the global economic system, growth opportunities remain robust in various economic sectors and geographies.
Altex Group highlights outlooks on the emerging trends concerning investment opportunities in alternative assets.
Innovations in new asset classes
Leading asset managers foresee deepening and widening asset management products. The new products will involve greater client engagement in search of greater match to client investment needs and value creation requirements. The new space for asset class innovation includes private investment assets and small and less-scalable opportunities with value orientation.
Opportunities in emerging and growth markets
Emerging economies are expected to continue to be the main driver of the global economic growth. Continuing deepening of financial markets in the emerging economies will provide for new investment opportunities and asset classes for international investors. Participants at the Annual Meeting offered unique insights on the opportunities in the dynamic growth sectors in South-East Asia, India, and Africa. Emerging markets equities and fixed income products ranked among the most rewarding financial innovations over the past 5 years. At the same time emerging markets are expected to be the most significant source of new funds for the coming decade.
New asset allocation techniques
New asset allocation techniques enable greater access to a wider variety of investment products to larger investment clientele. In search of diversification and new non-traditional sources of returns, global investors will have access to investment techniques previously available only to limited number of institutional players. New allocation techniques will involve greater variety of publicly available products with new innovative risk-return profiles and participation schemes for private investments across multiple industries. Examples of emerging techniques include mutual funds using hedge funds to enhance returns, capital protection funds, enhanced/variable annuities, new types of ETFs, smart Beta products, and product wrappers (social funds, water/environmental funds, religious funds).
Sustainable asset management
Sustainability has become a leading global challenge. Finance should play a pivotal role in driving sustainability in economic activities around the globe. Trends in financial innovation now enable greater emphasis on asset allocation based on sustainability and environmental principles. Financial innovation in sustainable investments allows asset managers to prosper by identifying and responding to opportunities created by competitive advantages in sustainability. New investment themes address challenges related to environment, inequality, renewable energy, water, natural resources, social inclusion, and other long-term vision for stakeholder value. Sustainability values are expected to play an increasingly greater role in guiding innovation in financial industry.
Altex Group is dedicated to increase market efficiency in private investments by developing financial infrastructure to enhance the transparency and cost-efficiency of private transaction execution. Altex Group aims to continue increasing its presence in the emerging markets and facilitate sustainable financial solution for growth companies and special opportunities in the alternative sector.