Know Your Alternatives
Alternative Investment Division
What are Alternatives?
Alternative investments are strategies that use non-traditional approaches to invest in both public and private markets. Alternative strategies such as real estate, private equity, private credit and hedge funds can provide an attractive source of alpha, income, and diversification to complement a traditional stock and bond portfolio.
How alternatives can help your portfolio:
There are a wide range of alternative asset classes. Each have their own benefits and risks, so alternatives should not be treated as a single portfolio building block. Instead, investors can work with experienced advisors to find the right alternative strategy or blend of strategies to meet their portfolio needs.
Rethinking Diversification
Investment strategies that worked in the past may not get investors where they want to be in the future.
Challenges in public markets have continued to morph, creating a need for alternative sources of alpha, income, and diversification. Adding alternatives can help. Over the long term, through diverse market conditions, an allocation to alternatives has demonstrated the ability to improve both risk and return when compared to traditional stock and bond portfolios.
Accordingly, investors may need to look beyond the traditional 60:40 portfolio to help them manage volatility and achieve real diversification.
Our Alternatives
Physical property for living and working around the world
The size, breadth, and tangible nature of the assets make real estate a foundational asset class. Core real estate includes multi-family, industrial, retail and office properties – as well as extended sectors such as single-family rentals and life science properties. Real estate also includes non-core sectors such as assisted living, hotels, data storage, and student housing. These sectors offer different risk and reward profiles based on their underlying assets.
Real Estate’s role in a portfolio
Adding core real estate to your portfolio has the potential to provide strong, predictable yield, consistent returns and diversification, and can help to protect against inflation and reduce portfolio volatility.
Greater return potential
Private credit refers to direct lending to small or middle-mar- ket companies that cannot or choose not to tap into public credit markets to finance their business needs. Within the asset class, investors and borrowers often gravitate to this segment for consistent income, downside resilience, and portfolio diversification from core private credit and enhanced return from distressed private credit.
Private Credit’s role in a portfolio
In recent years, private credit, and more specifically direct lending, has been an increasingly attractive asset class for investors looking for enhanced income, downside protection, and diversification. Traditionally, direct lending has been an extension of public fixed income investing thanks to the yield benefits it provides. Today, investors can also look to the asset class for inflation protection as most direct lending loans have
Tax benefits for funding underrepresented areas
Opportunity Zones are a U.S. federal tax incentive program designed to encourage private investment in economically distressed areas. These zones are typically low-income or underdeveloped communities that have been designated by state and federal governments. The Opportunity Zone program was created as part of the Tax Cuts and Jobs Act of 2017 to stimulate economic development and job creation in these areas.
Privately funded, publicly enjoyed
The Opportunity Zone program aims to attract investment capital to areas that may not have otherwise received it, there by stimulating economic growth, creating jobs, and improving the quality of life for these communities.
An investment tailored to your needs
Structured notes returns are based on the performance of an underlying index or combination of indices. Income notes focus on providing interest payments and are often linked to broad based US indices. Growth notes, on the other hand, return a given multiple of the gains of the underlying asset(s) at maturation.
Equity-like returns with reduced risk
An aspect of structured notes which attracts investors is their principal investment protection, or downside protection. Each structured note includes a predetermined protection level which, until breached by the underlying index, protects the investors’ original investment at note maturation.
The core building blocks of societies and economies
Infrastructure assets are the facilities and networks essential to the economic productivity of society—assets such as water utilities, power networks, airports, and public transportation systems.
Using Infrastructure
Adding core infrastructure to a portfolio can provide a consis- tent, stable source of yield, while helping to protect against in- flation, mitigate downside risk, and reduce portfolio volatility.
Digital investing for the modern world
In a world that is becoming increasingly digitized, investors are seeking new ways to gain exposure to these technological trends.
Using Digital Assets
Digital assets, particularly cryptocurrencies, have surged in popularity in recent years, and for good reason. These assets offer accessibility, decentralized governance, and secure blockchain technology, making them an attractive option for moderate-to-aggressive investors looking to capture potential growth.
