Why should I consider alternative investments?


A "60/40" allocation to stocks and bonds may no longer be enough to provide investors with the returns and diversification needed to achieve their long-term goals. Over the past 10 years most portfolios carried predominantly equity risk: a 60/40 portfolio moved in the same direction as the S&P 500 Index 99% of the time.1 When screened for correlation to other parts of a portfolio, alternative investments may help lower volatility, enhance returns and broaden diversification.


The new diversification: Open your eyes to alternatives

When it comes to diversification, the “old rules” may not work as well as they used to. Incorporating alternative strategies can help diversify risk and potentially introduce new sources of return.

Market volatility can erode a portfolio's value

Alternative investments can help mitigate the effects of market volatility on a portfolio while providing attractive returns.

Diversification is difficult when correlations are rising

A "diversified" portfolio of stocks and bonds has been moving nearly in lock step with the stock market. Alternatives can potentially lower this correlation and dampen the effects of market volatility.