Alternative investments such as real estate, infrastructure, private equity and hedge funds are becoming ever more mainstream as investors seek to diversify their portfolios beyond the traditional composition of equities and bonds. Their performance will generally differ from traditional asset classes. This low correlation can make them a useful addition to a mainstream portfolio. However, they can have low liquidity, meaning they are more difficult to sell than other asset classes. Consequently, institutional investors have historically been the predominant investors in this asset class.
Whether seeking sources of income, capital growth, or enhanced portfolio resilience to volatility, alternatives offer a diverse range of opportunities for experienced investors.