“Liquid alts” give individual investors new power to pursue financial goals

June 16, 2014 11:00 AM Eastern Daylight Time

SAN FRANCISCO—( BUSINESS WIRE )—The move toward alternatives has been one of the biggest investment trends of the past half-century, but has been out of reach to investors other than the ultrawealthy few who qualify to invest in hedge funds. Now all that has changed with the rise of so-called liquid alternatives, a new breed of mutual funds that combine the sophisticated, goal-driven strategies of the hedge fund world with the daily liquidity, regulatory oversight and accessibility of the mutual fund structure. Liquid alts non-correlating characteristics can help investors control risk and build more “all-weather” portfolios.

Winning with Liquid Alternatives: How to Achieve Your Financial Goals by Investing in ’40 Act Alternative Mutual Funds (McGraw-Hill Education, April 2014) is the first comprehensive guide to these new hybrid investment vehicles. It is an action-oriented book providing the historical framework, portfolio construction concepts and practical tools investors need to understand, evaluate and select alternative mutual funds.

Written for individual investors and financial advisors, the book was authored by Norman Mains, Ph.D. who has more than 15 years of experience in researching and creating alternative investments. The book is available on Amazon and other distributors in either hard copy or e-book format.

Mains will be hosting a webcast on June 26 (4:15 ET/1:15 PT) on the topic of Effortless Ways to Add Liquid Alts to Portfolios. To access the Forward webcast channel and attend the session, please register with www.brighttalk.com.

By providing access to return streams with portfolio characteristics unavailable from traditional stocks and bonds, alternative mutual funds give mainstream investors a whole new set of tools for controlling risk and pursuing portfolio growth, income and capital preservation objectives. Liquid alternatives can employ many of the same strategies and techniques as hedge funds, and meet all requirements of the Investment Company Act of 1940, just like any other mutual fund.

“In industry surveys, most investors say they have little understanding of what alternative investing is all about,” said Mains. “I wrote the book to help fill that gap. Investors need to know that liquid alternatives can help them build more all-weather portfolios with a higher probability of achieving their long-term objectives.”

Individual and institutional investors alike are rapidly increasing their use of liquid alternatives. In the decade between the end of 2003 and year-end 2013, assets in alternative mutual funds grew nearly tenfold, rising from $19.7 billion to $264.1 billion, according to Morningstar.

Mains is managing director, chief administrative and risk officer for Forward (Forward Management, LLC), an independent asset manager focused on alternative mutual funds. He discusses his new book in a downloadable interview on Forward’s website. He is also a regular contributor to the new Forward blog. Mains was formerly executive director and chief investment officer for Morgan Stanley’s Graystone Research, where his team created customized alternative investment solutions for institutions and high-net-worth individuals. His previous positions include executive director for product development at Dow Jones Indexes, director of research and chief economist at the Chicago Mercantile Exchange and head of a fund of hedge funds group at Carr Global Advisors. He holds a B.A. and M.A. from the University of Colorado and earned his Ph.D. in economics from the University of Warwick in the United Kingdom.

About Forward

The world has changed, leading investors to seek new strategies that better fit an evolving global climate. Forward’s investment solutions are built around the outcomes we believe investors need to be pursuing – non-correlated return, investment income, global exposure and diversification. With a propensity for unbounded thinking, we focus especially on developing innovative alternative strategies that may help investors build all-weather portfolios. An independent, privately held firm founded in 1998, Forward (Forward Management, LLC) is the advisor to the Forward Funds. As of March 31, 2014, we manage more than $5.2 billion in a diverse product set offered to individual investors, financial advisors and institutions.

You should consider the investment objectives, risks, charges and expenses of the Forward Funds carefully before investing. A prospectus with this and other information may be obtained by calling (800) 999-6809 or by downloading one from www.forwardinvesting.com . It should be read carefully before investing.

RISKS

There are risks involved with investing, including loss of principal. Past performance does not guarantee future results, share prices will fluctuate and you may have a gain or loss when you redeem shares.

Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors.

Forward is not responsible for the content of third party links.

Norman Mains is a registered representative of ALPS Distributors, Inc.

Forward Funds are distributed by Forward Securities, LLC.

Not FDIC Insured | No Bank Guarantee | May Lose Value

©2014 Forward Management, LLC. All rights reserved.