Alternative Investments: Thinking Beyond the Traditional Asset Classes

Discover the reasons investors diversify their portfolio with alternative investments.

Alternative investments, with unique strategies and structures, can offer different risk return patterns than traditional stocks, bonds and cash.

While alternative investments have been around for a long time – especially in institutional circles – they have only become more widely adopted in recent decades through the evolution of more private wealth-friendly investor structures.

Some alternative investments have the potential to enhance returns or income. Others provide investors with access to opportunities for strategies that aren’t available within traditional markets. Certain alternative investments can perform as an inflation hedge or help investors manage risk.

Investing in alternatives

Alternative investment strategies offer fundamentally a different approach and investor experience than that of publicly traded investments. While they can give you expanded exposure to the investable universe of stocks, bonds and real assets, this will come at reduced levels of liquidity. Examples of alternative investments include: