A common mistake is to treat alternative investments as a single asset class. Alternatives include a spectrum of asset strategies and fund structures. Each alternative is designed to deliver certain benefits and comes with its own specific type of risk. Investors should consider the investment strategy, fund structure and investment expertise of a manager before deciding which alternatives to use in their portfolios.
An introduction to alternative investing
Offering a differentiated way to invest in real estate and an alternative source of income and diversification
Investing in less liquid and more complex areas of the credit market may help investors generate an attractive level of income, reduce interest rate risk and manage portfolio volatility.
Investing in private U.S. energy and energy infrastructure companies with the goal of long-term income and growth
These daily liquid open-end funds can help individuals diversify their traditional stock and bond portfolios
Generatingthrough direct investments in private U.S. companies
Identifying, acquiring and operating private middle market companies with an objective of generating long-term shareholder value
Accessing the credit of private U.S. middle market companies
Understanding ways to invest in alternatives
An investment that facilitates the flow of capital to U.S. middle market companies
An interval fund is a type of closed-end fund that offers liquidity at stated intervals, typically quarterly, semiannually or annually.
Mutual funds and other pooled investments that fall under the Investment Company Act of 1940 and are regulated by the U.S. Securities and Exchange Commission
Considerations for selecting an alternative manager
The importance of experience and expertise
How a manager aligns its interests with its investors
Combining the investment expertise of an investment adviser and sub-adviser can provide a dual layer of expertise and oversight