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 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.
Australian investors are looking past the allure of franking credits and moving towards more unbiased diversification, with ETFs providing a cheap, liquid and highly available access point.
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.
Both in the US and at home, the model portfolio market has matured to the point where most advice firms running managed accounts are in the frame to use customised options.
