The Investment Program Association (IPA) and DST Systems, Inc. (DST) have partnered together to provide data analytics and frequent reporting on non-traded real estate investment trusts (REITs) and business development companies (BDCs).
Formed in 1985, the IPA provides the direct investment industry a voice in Washington, D.C. and offers educational resources for investors and their advisors. As the largest provider of transfer agency services, DST has access to data at the broker-dealer, advisor, and investor levels.
Together, the IPA and DST intend to identify and research trends on products, sponsors, broker-dealers, advisors, and shareholders as related to non-traded REITs and BDCs.
“The IPA is excited to offer new insight into direct investments,” commented Kevin Hogan, the IPA’s CEO and president. “Our newfound ability to conduct research and make decisions based on real-time data will help shape the future of the market. In collaboration with DST, we will address important issues in ways we never thought possible.”
The duo has already gathered and reviewed key data for calendar year 2014. For example, over 30,000 financial advisors have placed clients in non-traded REITs and BDCs and over 1.2 million investors own at least one of the two investment products.
Other statistics include:
- Approximately $16,900 was the average account size;
- 84% of investors were age 50 and over, and 41% were age 65 and over;
- $21.6 billion was invested in non-listed REITs and BDCs;
- 43% (or $9.2 billion) was invested through Qualified Accounts.
Another key finding was that of the $5.9 billion in distributions to investors, 30.4 percent was reinvested demonstrating investor and advisor continued support of the asset classes.
DST’s Applied Analytics Group will act as the IPA’s statistical and analytical advisor in regards to the non-traded REIT and BDC data.
“We view this collaboration as an opportunity for both organizations to provide insight about these unique investment vehicles,” commented Chris Shaw, operations officer for DST Asset Management Solutions. “We believe that research based on real-time data can be an important tool for the entire industry.”