Ameriprise Financial Launches Active Diversified Alternatives Portfolios

New solutions to give individuals access to alternative strategies often reserved for institutional investors

Ameriprise Financial has introduced Active Diversified Alternatives Portfolios (ADAP), a series of professionally managed portfolios designed for long-term investors seeking increased diversification and risk management.

Ameriprise has claimed that ADAP is designed to maintain risk-adjusted performance, by incorporating uncorrelated sources of return from funds that utilize alternative investment strategies.

It has been reported that ADAP uses six alternative investment trading strategies from conservative to all equity, within a discretionary wrap account that allows financial advisors to make recommendations from among six risk profiles and two tax treatments (tax-sensitive and tax-neutral), based on investors’ goals, risk tolerance, tax situation, resources and specific needs.

Sarah McKenzie, senior vice president of Brokerage and Managed Products at Ameriprise Financial, said: As individual investors work with their financial advisors to define risk tolerance, they are increasingly focused on managing risk over the long term. Active Diversified Alternatives Portfolios seeks to provide investors with consistency, diversification and risk management through a sophisticated investment process that is easy to use.

Ameriprise has added that ADAP series gives investors access to Wilshire Funds Management's qualitative and quantitative analysis, and the firm’s approach to asset allocation investment research and portfolio construction. The investment professionals at Wilshire view and assess the market and act on opportunities based on their insights into the asset allocation strategies of institutional investors.