Unlisted securities trading platform PrimaryMarkets has launched a new financial adviser channel designed to improve advisers’ ability to access alternative investments.
PrimaryMarkets said the platform would allow advisers to offer their clients access to new investment opportunities, many of which were previously only available to institutional investors, giving them access to more options to diversify their portfolios.
Research by Praemium and CoreData released earlier this month found that almost one in five (17 per cent) high-net-worth (HNW) investors are now utilising alternative assets. According to Praemium, this could be a strategy to diversify their portfolios.
The research also noted a link between the use of alternative assets and a higher level of engagement with a financial adviser, with 56 per cent of HNW investors utilising alternative assets maintaining an ongoing relationship with an advisers as opposed to just 36 per cent of those not.
To improve the ease of access, PrimaryMarkets said it has updated the platform “with the adviser experience in mind, ensuring as little administration from the adviser as possible”.
According to the company, the platform has seen “strong growth” in trading activity this year, particularly in new accounts.
PrimaryMarkets executive chairman Jamie Green said access to alternative investments offers a unique opportunity for advisers and their clients.
“Alternative investment asset classes offer solutions to tap into new, dynamic opportunities, helping balance portfolio risk/return exposures and counter the impact of persistent inflation and volatile interest rates,” Green said.
“The PrimaryMarkets Platform enables advisers and their clients to access many new investment opportunities across both unlisted companies – many of which are pre-initial public offering (IPO) – and open/closed managed funds.”
The platform provides advisers with the tools and support to facilitate the buying and selling of unlisted assets, which Green said can otherwise be difficult to trade.
“PrimaryMarkets also provides our users with the ability to sell their shares in unlisted companies, or units in managed funds, where it would otherwise be difficult to obtain liquidity,” he said.
“PrimaryMarkets will continue with ongoing investment in the Platform to further enhance the experience for both advisers and end-clients, with a range of further updates earmarked for development and roll out later this year.”