Scott Tominaga Explores Real Estate Investment Trusts (REITs)

 

Exploring Real Estate Investment Trusts (REITs) with Scott Tominaga

A real estate investment trust (REIT) is a company structured to own, operate, or provide financing for income-producing real estate properties. These specialized entities, like mutual funds, allow a collective pool of investors to contribute capital, creating a diversified portfolio. According to Scott Tominaga, through this collective investment model, individuals gain the opportunity to receive dividends generated from real estate holdings without direct involvement in property management. REITs offer investors a way to benefit from the real estate market's potential returns while mitigating risks associated with property ownership, making them an attractive option for those seeking passive income streams and diversified real estate exposure in their investment portfolios.

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How do REITs work?
Congress established Real Estate Investment Trusts (REITs) in 1960, enabling everyday investors to access commercial real estate portfolios previously limited to affluent individuals. REITs include a variety of properties such as apartment complexes, data centers, healthcare facilities, hotels, and infrastructure like fiber cables, cell towers, and energy pipelines, alongside office buildings, retail centers, self-storage facilities, timberland, and warehouses. Scott Tominaga explains that while REITs usually focus on specific real estate sectors, some offer diversified options with mixed property types. Many REITs are publicly traded on major exchanges, allowing investors to trade them like stocks, with high liquidity and significant trading volumes.

How can you invest in REITs?
You can explore investment opportunities in publicly traded Real Estate Investment Trusts (REITs), including REIT mutual funds and REIT exchange-traded funds (ETFs), by acquiring shares through a broker. If you are interested in non-traded REITs, you can purchase shares through a broker or financial advisor involved in the offering. Additionally, REITs are becoming increasingly prevalent in both defined-benefit and defined-contribution investment plans, offering a diverse range of investment options for individuals looking to diversify their portfolios.

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What are the Pros and Cons of Investing in REITs?
REITs can be a valuable addition to an investment portfolio due to their potential for strong annual dividends and long-term capital growth. Over the past two decades, REITs have shown better total returns compared to the S&P 500 Index, other indices, and inflation rates. Scott Tominaga points out that while they offer ease of trading on public exchanges, mitigating some real estate investment challenges, REITs provide attractive risk-adjusted returns and consistent cash flow. Including real estate in a portfolio can enhance diversification and yield dividend income, often surpassing returns from other investments.

On the downside, Real Estate Investment Trusts (REITs) typically do not offer significant capital appreciation potential. Due to their structure, REITs are required to distribute at least 90% of their income to investors, leaving only a limited portion for reinvestment to acquire new holdings. This can impact the growth potential within the REIT. Scott Tominaga adds that it is important to note that REIT dividends are subject to taxation as regular income, which may affect overall returns for investors. Some REITs may also incur higher management and transaction fees, which could potentially impact investors' net returns.

Scott Tominaga is an experienced professional in the hedge fund and financial services industry. For more on finance and investment, visit this blog.

Scott Tominaga on Low-Risk Investments for Young Professionals

 

Scott Tominaga: Build a Financial Base with Low-Risk Investments

Low-risk investments are a fantastic starting point for young professionals looking to establish a solid foundation for financial success. These investment avenues offer a delicate balance between safeguarding capital and attaining moderate returns, setting individuals on the right path toward their financial goals.

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Scott Tominaga discusses low-risk investment options specifically tailored for individuals embarking on their professional journeys. The array of asset classes available for consideration includes traditional options such as stocks, bonds, and mutual funds, as well as modern alternatives like exchange-traded funds (ETFs) and cryptocurrencies. Each asset class presents unique opportunities and considerations, allowing investors to diversify their portfolios and explore various avenues for growth and wealth accumulation.

Savings account 

A savings account is a simple and secure way to park your money. While the returns may be modest, the capital is easily accessible, making it a low-risk option for short-term goals or emergencies.

Certificate of deposit (CD) 

 A certificate of deposit (CD) provides a constant interest rate for a designated duration, varying from a few months to several years. It offers a marginally higher yield compared to standard savings accounts and presents a low-risk choice due to the constant interest rate.

Government bonds 

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Investing in government bonds, such as U.S. Treasury bonds, is considered low-risk. The government backs these bonds, which offer a reliable source of income through periodic interest payments and return of the principal upon maturity.

Corporate bonds 

Similar to government bonds, corporate bonds offer a fixed interest rate. However, Scott Tominaga says they come with a slightly higher level of risk. Choosing bonds from stable and established companies, however, can somewhat mitigate this risk.

Money market funds 

Money market funds allocate funds to short-term, low-risk securities like treasury bills. Their goal is to sustain a consistent net asset value (NAV), rendering them a secure choice for safeguarding capital.

Real estate investment trusts (REITs) 

REITs allow young professionals to invest in real estate without the hassle of property management. These trusts own and manage income-generating properties, offering a steady income stream with relatively lower risk compared to direct property ownership.

When considering low-risk investments, Scott Tominaga says it's essential for young professionals to align their choices with their financial goals, risk tolerance, and time horizon. Although these choices might not yield the maximum returns, they establish a sturdy base for financial stability. They also can act as a starting point for developing more diversified portfolios as their careers advance.

Scott Tominaga is a professional in the hedge fund and financial services industry. He is skilled in all aspects of back office operations daily, such as investor relations and marketing. Learn more about Scott and his background in investment by visiting this blog.

Scott Tominaga: The Potential of an Investment Portfolio

 

Scott Tominaga: How to Grow Your Investment Portfolio

Investing is a game of patience and strategy. For many investors, the ultimate goal is to preserve their capital in the long term. It's not just about making a quick profit but about safeguarding their hard-earned money for the years to come. It's important to approach investing with a mindset that prioritizes minimizing risks and preventing losses.

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Today, Scott Tominaga reviews some strategies business owners can apply to make the most of and protect their portfolios as they go for more investment options. All investment ventures come with risks, but being aware of risks is part of maximizing the potential of one's investment portfolio.

First off, you need non-correlating assets.

According to Scott Tominaga, non-correlating assets refer to multiple stock portfolios such as commodities, bonds, real estate stocks, and currencies that often eliminate most unsystematic risks while helping compensate for the given systematic risks. These assets allow for lowered volatility since they react to market changes differently when compared to stocks. In short, non-correlating assets make for more balanced and safer returns.

Next up, your portfolio has to have diversification.

Anyone who's put together a winning portfolio knows how important diversification can be. In fact, Scott Tominaga has always emphasized that a diverse portfolio will often outperform concentrated ones. Individuals can gain a larger number of investments in more than a single asset class. This strategy goes well with non-correlating assets as it aids in regulating the unsystematic risk that comes with investing in a single company.

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Lastly, look for dividends.

Opting for stocks that pay in dividends is always a great idea, Scott Tominaga points out. Dividends guarantee above-average returns and act as a needed cushion in case markets decline. Many statistics prove that businesses that pay good dividends tend to earn more rapidly. Normally, the more secure they are, the higher the share prices and capital gains.

Scott Tominaga earned his degree in Business Finance from Arizona State University in 1988. An experienced professional in the hedge fund and financial services industry, he has expertise in the middle and back office, accounting, compliance, and administrative functions within financial services firms. More investment tips here.

Why crypto investors need more protection than ever

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In a statement regarding the protection of cryptocurrency buyers, the Financial Supervisory Authority of Norway, also known as Finanstilsynet, mentioned that it does not oversee locally operated crypto companies in anything other than preventing illegal money laundering practices.

According to Scott Tominaga, the head of PartnersAdmin LLC, Finanstilsynet also identified major risks related to crypto trading, such as scams and unstable prices that lack the transparency to supervise. However, it does recognize the urgency of setting up protective measures for investors and legal frameworks to help make crypto safer for investors.

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The authority pointed out how the European Commission proposed market regulations for crypto in September of 2020. Scott Tominaga adds that this proposal included the rules that would protect investors and halt the abuse of markets, among other regulations.

Furthermore, Finanstilsynet noted that investors wouldn't be safe in the cryptocurrency business until these rules and regulations have been set in stone.

Scott Tominaga explains that Norway is currently known as the world's most cashless country. Only 4% of Norway's transactions are done with banknotes and coins. Because of the huge percentage of people preferring not to use cash, the country's central bank started looking into central bank digital currency earlier this year.

Scott Tominaga leads all aspects of back-office operations, including investor relations and marketing. Learn more about him and his work by clicking here.

A look at some useful hedge fund strategies

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Scott Tominaga 0f PartnersAdmin LLC has been in the hedge funds industry for almost 20 years. He has seen how hedge fund investment has become one of the driving forces in the investment management industry and an integral part of Wall Street’s history. In today’s blog, Scott Tominaga shares some of the more useful hedge fund strategies he has learned throughout his career. 1. Long/short equity

As the name implies, the strategy involves maintaining long and short positions in equity and equity derivative securities. Scott Tominaga mentions that this is achieved by purchasing stocks that seem to be undervalued and selling short stocks that are deemed overvalued.

2. Market neutral

This strategy is similar to long/short equity but has a lower risk and lower expected returns. It uses the same concept. Exposure to the broad market, however, is minimized by having equal market values of investment in both long and short positions to ensure that net exposure is equivalent to zero.

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3. Global macro

The global macro strategy may have the highest risk-return profile of any hedge fund strategy because it deals with investing sizably in shares, bonds, currency markets, commodities, and other similar derivative securities. Scott Tominaga has mentioned before that managers who use this strategy utilize macroeconomic analysis based on global economic and political events and trends to determine which asset classes to invest in.

Scott Tominaga is the COO of PartnersAdmin LLC, a company that employs a team of experts that have hands-on experience needed in solving the challenging operational issues faced by alternative funds managers. Read more discussions about the industry by subscribing to this blog.

A look at the ideal investment manager

 

According to investment expert Scott Tominaga of PartnersAdmin LLC, a lot of people want to invest in stocks, bonds, or other type of mutual fund but don’t have the expertise to do so. This is where investment managers come in. They guide people in making investments. Investment managers or fund managers can help people make sound decisions and use their funds well.

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Scott Tominaga mentions that there are certain traits to look for in an ideal investment manager. Here are some of those traits.

Deep knowledge in the realm of investments

The ideal investment manager should know everything there is to know about investments and should be able to answer any question raised by their clients. He or she should also possess the desire to gain more knowledge of the field.

Also, Scott Tominaga notes that while having a business degree would certainly be a plus, it isn’t the end-all and be-all when it comes to investment managers.

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Clear communicator

The ideal investment managers should also be able to communicate clearly and effectively. A lot of clients are not well-versed in the world of investment. To avoid any misunderstandings, it is thus important for investment managers to clearly inform their clients in ways that can be understood easily.

Discipline

Finally, Scott Tominaga mentions discipline. Discipline is necessary for investment managers since their work requires precision analysis of the market, performing under pressure, and working with multiple clientele. Discipline also enables investment managers to effectively assess markets properly before investing their client’s funds without the need for a thorough background check on a certain investment.

Scott Tominaga is a professional in the hedge fund and financial services industry. He is also the Chief Operating Officer of PartnersAdmin LLC, whose offices are based in Los Angeles and San Diego, California. Mr. Tominaga has been responsible for different aspects of back office operations on a daily basis, including investor relations and marketing. For more reads on investment, visit this blog.

Required information when researching hedge funds

 

According to Scott Tominaga of PartnersAdmin LLC, investors need to do their due diligence before putting their money in an investment, because there will always be risks. Take hedge funds, for example. While these investments may vastly improve diversification and balance risks, they still need to be researched on before taking any action.

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On that note, Scott Tominaga shares what investors need to know and what requirements they should have before investing in hedge funds.

Documents

The first document to investors should have is the pitchbook. This document, which contains all the necessary details about fund manager, as well as their hedge fund strategy, can be requested.

When the background of the fund manager meets the requirements of the investor, the next document to obtain is the fund’s prospectus or offering memorandum. This a set of documents that lists the investment strategies, fees required, operating manuals, mandates, and more. All of this should be reviewed as well.

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Investment terms assessment

Scott Tominaga reminds everyone that before agreeing to transactions with a hedge fund manager, everything under the investment terms must be checked thoroughly. These terms include minimum allocation amounts, share classes, fee terms and structures, redemption terms, and notice periods, among others.

Information on redeeming shares

This is an oft-overlooked part of researching hedge funds. Far too many investors, unfortunately, take for granted the limitations on redeeming shares. This is an extremely crucial part of the deal. Scott Tominaga has mentioned before that investors have been burned because of this.

Scott Tominaga has about two decades of experience in the hedge fund and financial services industry. He has successfully interacted with fund managers and professional service providers, helping create efficient and transparent operations and reporting structures in several operational infrastructures. Learn more about what he does by visiting this website.

How to invest in your local economy

 

With every state affected by the coronavirus outbreak, it’s no surprise that several localities were hit harder than others. In rural locations where jobs are scarce, businesses shutting down for health reasons are crippling the local economy. Not everyone can just work from home or live off savings for a year. There is a reason why people across the country were protesting to reopen businesses. According to Scott Tominaga, the best way for a community to thrive once more is by pouring money into local businesses. Here are some ways you can help your local economy. 

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Create a local investor network

On your own, it might be impossible to save your local economy. This is why you should look for the cavalry to back you up. Finding several investors who can direct some of their money to help a failing business or help a business reopen takes the load off your shoulders. As a group, you can choose which establishments to help, help them, and be part of the business itself.

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Crowdfunding

The internet is a wonderful thing. You can create a crowdfunding page, upload a video, and save a business in a matter of days if you are that lucky. Thousands of people constantly browse crowdfunding pages, ready to give a helping hand, so don’t shy away from programs such as these.

Keep spending locally

It takes a while before cash circulates in a small community. Support every business, even if it’s not cost-effective. Your local grocer’s potatoes are $2 more expensive than the one in the next county? Pay the difference. Are you planning on replacing your AC at a mall in the next town? Ask your local handyman if they can fix your AC. Scott Tominaga believes that the best way to revive a local economy is through grassroots spending by locals.

Scott Tominaga has almost two decades of experience in the hedge fund and financial services industry. He has an extensive understanding of the middle and back office, accounting, compliance, and administrative functions within financial services firms. Visit this page for similar reads.

Dangers of vulture capitalism

Capitalism remains as one of the main forces that drive society forward. Investing in venture capitalism has become a staple way for individuals and consortiums to profit from the acquisition and investment of companies. However, capitalism is filled with loopholes, which makes it vulnerable to exploitation and abuse. Finance advisor Scott Tominaga claims that one of the most notoriously abusive practices in venture capitalism has made individuals spectacularly rich while leaving tens of thousands of lives in ruins. This practice is called vulture capitalism.

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As the name suggests, vulture capitalism takes advantage of dying companies. Investors do everything in their power to make the company’s market value go up, dismantle the company, and sell the rest to offshore buyers.

One prime example of vulture capitalism lies within the story of Delphi, a diesel fuel supplier with over 50 plants originally in the US. During its slump several years ago, a group of investors came in to bail the company out. But it turns out, they were only there to turn a profit. First, they laid off tens of thousands of employees and outsourced the jobs elsewhere where they didn’t have to pay for pension and insurance. This move raised the market value of the company, but only for a short while. Still, it was enough to secure buyers from other countries.

Before selling the company outright, they then fired all middle management to prevent other disputes. Out of the 50 plus original factories, only a handful remain. The venture capitalists also used the company’s bankrupt state to avail of government bailout money.

According to Scott Tominaga, several developed nations ban vulture capitalism. While it can enrich a few, it could leave tens of thousands of people jobless, their pensions cut, and their future devastated. PartnersAdmin LLC’s Chief Operating Officer Scott Tominaga has almost two decades of experience in the hedge fund and financial services industry. He has an extensive understanding of the middle and back-office, accounting, compliance, and administrative functions within financial services firms. For more insightful reads on finance, visit this blog.

What are angel investors?

Entrepreneurs are often looking for investors to fund their business. And at the same time, investors are keen on spotting the next big business that they can invest in. Investors can pour in millions of dollars to finance businesses that they deem would be successful, given their overall marketing plan and the feasibility of the endeavor. According to Scott Tominaga, there are many types of investors looking for businesses to support. There are venture capitalists, peer-to-peer investors, personal investors, as well as banks. One other type of investor is the angel investor.

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Often, angel investors are high net worth individuals who are looking for a startup or entrepreneurs to support. Like most investors, an angel investor may choose to give a one-time investment package or choose to inject funds to a business regularly provided their terms are kept.

Unlike venture capitalists who use pooled resources, angel investors rarely shell out 7-digit figures. They would, on average, invest $300,000 in a startup with an ROI of 20 to 25%. The terms they put out are often reasonable as their main goal is to promote innovation that translates to economic growth in the long haul.

To become an angel investor, one must first comply with the Securities and Exchange Commission’s terms such as having a net worth of $1 million in assets or having earned $200,000 in income over the past two years, or those with a combined income of $300,000 for married couples. According to Scott Tominaga, one doesn’t have to be an accredited investor to become an angel investor.

Scott Tominaga earned his B.S. degree in Business Finance from Arizona State University in 1988. An experienced professional in the hedge fund and financial services industry, his skills involve expertise in middle and back-office, accounting, compliance, and administrative functions within financial services firms. For more reads on finance and investment, visit this blog.

The advantages of fund of hedge funds

Fund of funds, also known as a multi-manager investment, is an alternative investment strategy wherein a fund is put in another type of funds. Instead of investing directly in investment vehicles, funds are invested in a portfolio or partnerships that already contain underlying assets. One scheme of this investment strategy is fund of hedge funds.

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Hedge fund investment, which Scott Tominaga has years of experience managing, has proven to be profitable for so many investors. Investing in fund of hedge funds also offers some benefits, such as the following:

Diversification: Every adept investment manager would concur that for a portfolio to be able to yield maximum possible returns and minimize exposure to risks and a single fund manager, it has to be as strategically diverse as possible. By putting in money in fund of hedge funds, an investor can get a piece of returns from all of the underlying assets and funds and gain exposure to an alternative asset type that does not compromise the overall portfolio structure.

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Outsourcing of manager talent: Not everyone is equipped with the know-how and expertise requisite to investing. This is a reason PartnersAdmin LLC, of which Scott Tominaga is the Chief Operating Officer, offers a plethora of financial services to its clients. By investing in fund of hedge funds, it entails outsourcing the decision-making to the manager, who typically has the resources, experience, methods, network, and effective due diligence in handling this investment strategy.

Learn more about investment in hedge funds by following this Scott Tominaga Twitter page.

What are the key roles of an investment manager?

When people want to invest some of their savings on funds, bonds, stocks, or other forms of investment, they often seek the help of an investment manager. Investment managers invest on persons, organizations, and other form of investment in behalf of their clients. According to finance expert Scott Tominaga, their regular tasks include day-to-day portfolio monitoring, buying and selling securities, measuring the performance of their portfolio, and reporting results to their clients. Besides these, here are a few key roles of investment managers.

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Educating clients
It’s not enough for investment managers to tell their clients whether or not a specific company or an investment is a good one. Investment managers should also educate their clients on the types of businesses in their portfolio. And, more specifically, it’s important for them to teach clients where their money is going and the merits of choosing a company or an investment over another.

Risk management
One of the reasons why people look for investment managers to help in investing in the market is because people do not know the risks involved in investment or stocks trading. Investment managers actively assess the risks involved in investing in certain bonds or companies before they commit their client’s money.

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Holding companies accountable for their performance
Given that investment managers put their client’s funds into companies, they also have the right to hold the company accountable for any major event that can affect their investment, explains Scott Tominaga. By doing so, companies receive pressure toward sustaining success and generating growth.

Scott Tominaga is the Chief Operating Officer of PartnersAdmin LLC, whose offices are based in Los Angeles and San Diego, California. PartnersAdmin LLC was established in July 2008 with the intent of providing a quality, outsourced solution to meet the dynamic back office needs of the alternative fund industry in response to the industry’s increasing focus on reducing systemic risk and promoting investor protection. To know more about Mr. Tominaga, visit this site.

Be safe and smart: Identifying investment fraud

Illegally defrauding investors is one of the biggest acts of embezzlement one can enact in the country. Bernie Madoff made off with as much as $50 billion from his clients in one of the biggest acts of fraud in history through a Ponzi scheme. And sadly, where there is money, there are people who are willing to dupe and deceive their way into making a fortune.

This is why people can be so paranoid about investment. Handing your hard-earned money to a financial guru whose job is to make your money grow may seem outlandish, but not everyone has an acumen for business. To avoid investment fraud, here are two helpful tips you can follow.

When the returns are too good to be true, walk away

Ponzi schemes, as well as other fake financial opportunities, could easily lure people into investing their money by simply flaunting a return proposition that they cannot refuse. Madoff promised returns of approximately 1% each month. That might seem small, but in reality, it was already too good to be true. It was small enough to elude the SEC but big enough to fool even legitimate businessmen.

Do due diligence before investing

Doing background checks isn’t so hard given today’s technology, and the information found online. There are regulatory institutions like the FINRA (Financial Industry Regulatory Authority) that helps people do background checks on brokers and is available online. Not only should you do a sweep on your broker, but you should also check the company as a whole.

Scott Tominaga is the Chief Operating Officer of PartnersAdmin LLC, whose offices are based in Los Angeles and San Diego, California. PartnersAdmin LLC was established in July 2008 with the intent to provide a quality, outsourced solution to meet the dynamic back office needs of the alternative fund industry in response to the industry’s increasing focus on best practices to reduce systemic risk and promote investor protection. For more reads on investment, visit this blog.

Five essential differences between private equity and venture capital.

Private equity and venture capital are often confused because of the way both of them refer to firms that invest in companies and exit through selling investments in equity financing, including initial public offerings (IPOs). But the specifics paint a whole world of difference between the two—here are five to remember:

The companies they buy

Private equity firms largely buy mature, established companies. These might not be generating enough profits or are regressing, and they are bought in order to increase their revenues. On the other hand, venture capital firms put their money into startups that demonstrate high growth potential. While PE firms buy companies across all industries, VC firms are focused on technology, biotech, and clean tech investments.

Percentage acquired

PE firms nearly always buy 100 percent of a company, while VC firms acquire only a minority stake or less than 50 percent. While the former seeks to have total control of the firm after a buyout, the latter usually prefers to spread out risk and invest in different entities.

Amount of investment

PE firms invest at least $100 million in a single company. Venture capitalists, on the other hand, spend $10 million or less in each company, since they largely deal with startups with less predictable chances of success.

Focus

PE firms don’t maintain ownership for the long term, instead preparing for a level of exit strategy after a few years. They seek to improved upon an acquired business and sell it for a profit afterwards. Venture capitalists get involved in businesses’ earliest stages of operation, and it’s often the startup capital they provide that offers new businesses the means to become appealing to private equity buyers.

People

PE firms tend to attract former investment bankers, while VC firms obtain a more diverse mix such as product managers, bankers, consultants, and former entrepreneurs.

Scott Tominaga is PartnersAdmin LLC's Chief Operating Officer with over 17 years in the financial services industry. Read more about the finance industry on this page.

Common Misconceptions About Hedge Funds

It is unsurprising when the media and countless people paint hedge funds in a negative light, because they are thought to be incredibly risky, unregulated, and operate in a volatile market. But once people see past misconceptions about hedge funds, they would see the potential of this investment vehicle to optimize and balance one’s portfolio.

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Some of the myths surrounding hedge funds are the following:

All hedge funds are risky

First of all, it is important to be aware that every investment vehicle inherently carries a unique set of risks. Secondly, there are various ways to define risks. And if riskiness is expressed in terms of standard deviation of performance, then stocks and private equity have actually been riskier than hedge funds the past two decades.

Having said that, there are more than 10 types of hedge funds, and not all of them have the same level of risk. Depending on their correlation to the overall market movement, some hedge funds have low-risk expectancy, while some have high-risk expectancy.

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Hedge funds are only accessible to institutional investors or high-net-worth individuals

There are actually many ways to enter hedge fund investments, and one does not even have to shell out hundreds of thousands of dollars to do so. Some hedge funds are traded on exchanges, while some can be accessed through pooling of investor money together. There are even fintech startups that use hedge fund strategies to invest.

Learn more about hedge funds by following this Scott Tominaga Twitter page.