Alternative Investments: Issues for Private Clients Concentrated positions “…client’s home should be factored in with the real estate allocation” What exactly does this mean? Don’t we normally exclude primary residence from assets when creating an IPS? If you include primary residence would a domestic real estate investment ever be appropriate for someone unless their residence was say <5% of their net worth? i.e. $4m investable assets w/ a $1m home. would it be wrong to recommend $200k in a real estate LP?
anyone? i could see the being tied in to an IPS essay very easily… also, FWIW I think alternatives will be on the high range of the 5-15% guideline. CAIA is getting too popular for CFAI’s liking.
exclude residences from investable assets in ips