Today, alternatives are an essential component of most high quality investment portfolios. Alternative investments provide access to alternative drivers of growth, can reduce portfolio volatility and protect against extreme market events. Investors are increasingly using alternatives to meet their own specific needs.
Hedge funds represent a range of different strategies that invest in traditional asset classes, but in a non-traditional way. Private equity allows investors to benefit from investing early in a company’s growth, restructuring a company or driving operational improvement. Property and infrastructure can provide attractive yields and capital growth and be a valuable source of diversification in a portfolio of traditional investments.
While the complexities of alternative investments can present challenges, these are surmountable with the right support. With advisory, partnership and outsourced solutions available, every investor should be able to benefit from the advantages that alternatives can bring.