Guide to Alternative Investments
Understanding the role alternative investments may play in portfolios today and the potential risks involved.
As market structures evolve and private markets account for a growing share of economic activity, investors are reassessing how alternative investments may contribute to long-term portfolio objectives. In some cases, they may provide differentiated return drivers, diversification, or exposure to areas of the market that are less represented in listed equities and bonds.
At the same time, alternative investments can involve significant risks and added complexity. These strategies may be illiquid, harder to value, more operationally demanding, and more sensitive to manager selection and governance quality than traditional investments. They are not appropriate for every investor, and outcomes can vary materially depending on market conditions, implementation approach, and investment selection.
Our guide explores the role alternative investments may play in portfolios today, the factors that may shape allocation decisions, and the risks investors should weigh carefully when evaluating these strategies. It also highlights the practical considerations involved in building, overseeing, and governing an alternatives allocation over time.
The guide includes an overview of:
Access the interactive guide to explore:
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The role of private markets and hedge funds in portfolios
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The key characteristics of major alternative asset classes
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Practical allocation and governance considerations
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Important risks and implementation challenges