SAN ANTONIO BUSINESS JOURNAL – Jefferson Bank’s 1900 Wealth is one of the first wealth management firms in San Antonio to begin offering alternate investment strategies to its clients.
Clients can now invest in venture capital, private equity and even energy-related mineral funds among others.
“The biggest plus is the higher expected returns and stability in markets like this where you have low correlation to traditional markets,” said Todd Brockwell, president of 1900 Wealth.
Brockwell says going forward traditional equities and public markets will not yield the same results they did in the past decade.
“Alternative classes can help enhance the returns without taking undue risk in a portfolio,” he said.
However, alternative investments are not for all portfolios, especially those with a demand for liquidity.
“Some of these clients are just not able to go into it,” said Brockwell. “Number one, they’re prohibited. Number two is they need substantial liquidity in their portfolio to live on.”
Brockwell explained when a client lives off his/her portfolio and draws from it often, situations may arise if the markets lose value, as has happened recently.
In response to tightening monetary policy Brockwell said some portfolios, where it is a good fit, have been moved into direct lending or private credit space so they can become fixed income proxies. This is in response to rising interest rates’ effect on the bond market.
1900 Wealth, founded as Monticello Wealth management in 2015 and rebranded last year, is a San Antonio-based investment advisory firm wholly owned by Jefferson Bank.