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Addressing investors’ needs

Investors seeking to improve the performance characteristics of their portfolios require:

 

  • Additional return sources not accessible via traditional long-only investments: alpha and alternative beta

  • Portfolio diversification and/or protection

  • Efficient access to actively managed, uncorrelated investment strategies

  • Fixed income substitutes in an environment of low interest rates or as a hedge against rising rates

  • Long-only equity replacements in a world of high equity valuations

 

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Most of these requirements can best be addressed through portfolios of liquid alternative investment strategies implemented as multi-manager solutions.

Investors Needs

Advantages of alternative multi-manager solutions

Solutions to particular investors’ needs can be implemented through a single investment or a portfolio of investments, referred to as a multi-manager solution

Alternative multi-manager solutions have the benefit of being able to access a wide range of investment strategies, ranging from alternative beta to highly skill-based and actively managed strategies. They also provide specific or diversified exposures to asset classes across various time frames

The main advantages of alternative multi-manager solutions include:

  • Wider investment strategy universe

  • Portfolio management flexibility

  • Higher degrees of diversification

  • Lower volatility

  • Mitigation of manager-specific risk

The wide range of advantages offered by alternative multi-manager solutions are an opportunity for investors to improve the risk/return profile of their existing portfolios.

Advantages
Benefits
Your benefits

 Capital preservation and stable returns

 

Diversifying, trading based solutions with directional exposure help preserve capital and compound returns.

Alpha Capture

Skilled managers trading relative value or arbitrage strategies have proven over different market cycles that they deliver alpha with minimal volatility. These strategies would also benefit from higher interest rateskilled managers trading relative value or arbitrage strategies have proven over.

Thematic exposure

Investing in highly specialized managers can add a wide range of themes, return streams and risk profiles to a portfolio.

Solutions
Alternative multi-manager solutions

ALPHA PORTFOLIO

  • Objective is to deliver Libor + 4% with very low volatility of 2% - 3%

  • Immune to rising interest rates, limited impact from equity market turmoil

  • Invests predominantly in arbitrage, relative value and other market-neutral strategies

TRADING PORTFOLIO

  • Objective is to deliver Libor + 4 - 6% with low or negative correlation to bonds and equities

  • Attractive diversifier within traditional portfolios

  • Implemented through flexible, actively traded and mainly directional strategies

COMMODITY PORTFOLIO

  • Objective is to deliver USD Libor + 8 – 10%, uncorrelated with equities and bonds

  • Capitalizes on the multi-dimensional opportunity set available in commodity markets

  • Invests in hedge funds specialized in commodity strategies

GREATER CHINA PORTFOLIO

  • A long/short investment portfolio

  • Investing with specialist China funds

  • Well-diversified stream of both alpha and beta

YOUR SOLUTION

  • Bespoke solutions designed to meet your specific requirements

  • This could include exposure to credit/lending, commodities, volatility, regional investments or megatrends  

Interested in our Advisory & Consulting?

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