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Alternative Investments

Introduction

In a post-crisis era, investors have faced low yields, increased financial market volatility and rising asset correlations. This "new normal" is prompting individuals to rethink traditional concepts about portfolio diversification. Although strategies changed over time the tools investors used, namely stocks and bonds, generally remained unchanged over the past 60 years. Today, 69% of investors no longer believe a conventional stock and bond portfolio is enough to generate adequate returns and preserve capital.1 Many investors are turning to alternative investments as a way to meet their financial goals amid today’s investment challenges.

Why Alternatives?

Alternative investments have experienced considerable growth over the last decade, with the market expanding by 11% per year.2 Looking ahead, alternative investments are expected to grow further.

Growth of Global Alternative Assets

1 Natixis, 2015 Global Survey of Individual Investors.
2 PwC, "Alternative investments: It’s time to pay attention," March 23, 2015.

Investing in securities involves risk of loss. Further, depending on the different types of investments there may be varying degrees of risk. An alternative investments strategy is subject to a number of risks and is not suitable for all investors. Investing in alternative investments is only intended for experienced and sophisticated investors who are willing to bear the high economic risk associated with such an investment.