What can alternatives bring to the table that traditional assets cannot? In an environment where volatility is back as a key factor, this question is on everybody’s mind. During this Masterclass, along with another industry expert, Olivier Marion outlines the two main benefits of alternative investments versus traditional assets. The first one is their greater investment flexibility. The second benefit derives from the first: as they enable investors to seek uncorrelated drivers, alternatives reduce the overall risk in portfolios.
As Olivier Marion defines it, the alternative investments universe is not limited to hedge funds but encompasses a broad range of non-traditional strategies and instruments going from commodities, to overlay strategies, the less liquid investments to be made in private markets or niche strategies like senior secured loans...
Olivier Marion emphasises that having shown its ability to reinvent itself after crisis, the alternatives industry is attracting renewed interest from investors.
Quoting recent studies indicating that 70 % of existing hedge funds investors are satisfied and that 30 % are planning to increase their investment, he adds that the current trend is to allocate 15-20 % of institutional portfolios to alternative investments up from 10-15 % last year.
Finally, UBP’s Investment Specialist explains how the UCITS regulatory framework can bring increased comfort to all types of investors, as it sets strict diversification rules and allows alternative exposure in a more liquid format.
Head of Business Development & Senior Investment Specialist