Chapter 10
Alternative Investments
A concise guide to non-traditional assets
‘Old age isn’t so bad when you consider the alternative.’
Maurice Chevalier
Whilst traditional asset classes make up the bulk of most portfolios, other assets can complement them, adding additional sources of return and enhancing diversification. Alternative investments (AI or alternatives) include non-traditional assets, such as:
- Property.
- Commodities.
- Private equity.
- Hedge funds.
- Infrastructure.
Many other types of AI exist, for example leveraged loans, insurance-linked securities (ILS), timber and art. However, they are rarely accessible on DC pensions and ISAs.
Historically, alternatives were held exclusively by institutional investors and high net worth individuals ...
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