As the investment landscape evolves, the role of alternative investments remains a topic of debate. Some argue that traditional asset classes – shares and fixed income – are sufficient to build a well-diversified portfolio, while others see alternatives as essential for achieving uncorrelated returns and risk-adjusted growth. Here, we explore both perspectives.
Australian investors have poured money into private equity (PE) investments in recent years, but asset valuations are prone to the same combination of multiple and margin compression, and interest-rate pressure, that affects the listed markets. A big chunk of the pile of PE value is potentially facing high fire risk.
Atchison’s framework for the implementation and effective management of alternative investments involves, before anything else, the careful assessment and categorisation of asset liquidity levels.
The democratisation of alternative assets into retail markets is nothing new, but the fact that it is accelerating brings into focus the risks that are now being acknowledged by investment management teams.
High returns help, but what’s more important is trust, accountability, and making sure that the remuneration structures aren’t “really cheeky”.
The alternatives sector is unique in that it’s largely defined by what it’s not. Accordingly, how you fit alternatives within your existing asset class structure will depend on relativity, and how the investments interact with the other asset classes according to Atchison’s Kev Toohey.
The benefits of alternative investments are clear, but rapid growth in the product set has made the optimal use of alternatives in portfolios unclear. As markets reach all-time highs, it may be time to re-think how we treat the asset class.
The “NewSpace” field has opened up in the wake of government entities pulling back their spaceflight programs across the world, which has given rise to a whole new class of Infrastructure-as-a-Service investment opportunities.
In this column we take a closer look at the best performing funds in some of the most popular asset classes, with the aim of providing insight and support for those seeking to build more resilient portfolios. This week, we take a closer look at liquid alternatives.
The prevailing market dynamic has changed, with inflation fanning volatility and bonds no longer providing diversification ballast against equities. Active managers that have been employing alternatives for years are well placed to accommodate the new paradigm.
David Di Pilla’s group made its bones flipping unloved real assets into a sprawling network of essential retail centres. Now HMC Capital is leaning into its public/private hybrid style of management and eyeing off investment in a host of sectors.
With almost $600 million worth of SMSF assets held in art – up 54 per cent since 2016 – the original alternative investment is seeing a significant resurgence in popularity.
Cryptocurrencies may take up most of the headlines, Invesco says, but the real investment potential lies in the technology and the trading platforms behind them – despite the shocking FTX blowup.
Infrastructure assets have been gaining investor interest due to their inflation hedging properties in recent times.
The four pillars of private equity investment all bring unique characteristics to the table.
Alternatives don’t have to be African coal mines; in many cases they’re just normal assets like equity or business loans wrapped up in a private market structure.
HMC Capital sees “fantastic opportunities” in current market dislocation.
Listed infrastructure companies provide a powerful hedge against inflation.
