Liquid alternatives may not be what they seem

Alternative to alts?

clock • 3 min read

One of the cornerstones of asset allocation strategy is to mix asset classes that work in divergent harmony.

But what happens when traditional asset classes are disappointing at the same time - like this year when stocks and bonds have fallen together? In the face of such broad equity and fixed income market downturns, some investors may be tempted by so-called alternative assets. These investments may include liquid alternatives, or "liquid alts," a subset of fund and ETF investments that offer easier-to-access exposure to alternative strategies which may claim to offer higher potential returns and lower correlations to stocks and bonds. But those twin claims of higher return and a smoot...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Alternatives