Perspective · April 2023

A considered view of alternative investments

An introduction to diversification, liquidity and the role alternative assets may play in a broader portfolio.

Alternative investments can include private capital, real assets and other strategies outside traditional listed equities, bonds and cash. They may offer diversification characteristics, but can also introduce greater illiquidity, complexity, cost and valuation uncertainty.

Diversification is not protection from loss. Low historical correlation does not guarantee future behaviour. Suitability depends on objectives, time horizon, liquidity needs, knowledge and capacity for loss. Independent professional advice may be appropriate.

Editorial notice

This educational summary is not investment advice and does not recommend any product or strategy.