Alternatives
In an ever-evolving and increasingly complex market environment, investors are actively seeking out opportunities to diversify their sources of return away from traditional equity and fixed income investments. Alternative investments can be key components in portfolios for all investor types, providing diversification benefits and reduced volatility helping investors achieve their goals.
What are Alternatives?
Alternative investments differ from traditional long-only equity, fixed income or cash investments and can refer to either alternative asset classes or alternative strategies or approaches to investing:
Alternative Asset Classes
• Real Estate
• Infrastructure
• Commodities
• Private Equity
• Private Debt
Alternative Strategies
• Market Neutral
• Long-short
• Managed Futures
• Global Macro
• Event-driven Arbitrage
• Multi-strategy
Investor Benefits
Because alternatives tend to behave differently than typical equity and fixed income investments, adding them to a portfolio may provide investors with several benefits:
Diversification through low to non-correlated return sources
Reduced volatility and risk
Downside protection and capital preservation
Greater risk-adjusted returns
