The evolution of portfolio construction.
The current investment landscape is drastically different from a few decades ago. Today's equity market volatility and low fixed-income yields mean that investors have to take on much more risk to achieve a similar return to 20 years ago. In light of these challenges, traditional portfolio management must evolve.
Navigating the World of Active Alternatives.
An Introduction to Active Alternatives™
Dynamic Education Series
Defining alternative investments.
Unlike traditional assets such as stocks, bonds and cash, alternatives generally fall into one of three broad categories:
Alternative assets
Such as commodities, real estate, infrastructure or currencies
Alternative strategies
Such as long/short, event-driven, market neutral, and global macro
Liquid investments
Such as private credit, private equity, or direct real estate
Understanding Alternative Strategies
Long-Short Equity Strategy
Leverage
Arbitrage
Active Share: Going Beyond the Benchmark
What are liquid alternative funds?
Liquid alternatives combine the liquidity and transparency of mutual funds with much of the investment flexibility of hedge funds. Because they rely on alternative sources of returns, liquid alternatives offer investors the potential for enhanced diversification, decreased volatility, and attractive risk-adjusted returns – independent of traditional stock and bond markets.
The rise of alternatives
Once the exclusive domain of institutional and high-net-worth investors, alternative investments have become increasingly accessible to more investors across Canada. The demand for liquid alternatives is expected to flourish over the next decade, evolving the way we view portfolio construction.
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