Pension-Style Portfolios for Your Fund
If your endowment fund, trust or corporation is currently invested with managers who only use the traditional approach of investing in stocks and bonds you may benefit by following the trend used by the world’s best-managed pension and endowment funds. These organizations have increasingly added several types of alternative investments to their portfolio mix, and for good reason. Diversifying portfolios with meaningful allocations to alternative investments is widely accepted as a preferred way to meet long term income and growth requirements. Diversification into alternatives can also reduce portfolio risk due to the volatility of stock markets.
Alternative Investment Options
There are many liquid and less liquid alternative investment choices available for institutions, the challenge is selecting the best options for your organization. Our preference is to focus on the asset classes we feel offer the best mid to long term returns and that can endure economic downturns. This criterion leads us to private real estate, mortgages and asset-backed loans. These asset classes are often more liquid than longer-dated investments like private equity, infrastructure, farmlands and timberlands.
Within real estate we prefer the safer, more economically resilient, multi-family residential sector, opposed to office, commercial or purpose-built, industry-specific properties like hotels.
Alitis has built well-designed multi-manager, multi-property, funds with additional liquidity options that individual properties or small groups of properties likely can’t match.