Market Update

Uncommon truths - Alternatives during the pandemic

Uncommon truths - Alternatives during the pandemic

Did so-called alternative assets provide a true alternative to conventional assets during the volatility of 2020? Our analysis suggests that gold did but that most others did not. Given this, and as with conventionals, our choice among alternatives relies critically upon economic/market projections.

In May 2020 we studied the potential role of alternative assets in our asset allocation process (see – Private equity is from Mars; hedge funds are from Venus). We considered that some were candidates to be core holdings (real estate, say), many were more tactical in nature (private equity and commodities, say), while it was hard to see a role for some (the broad hedge fund category mimics government debt but not as well). Fine wines have historically provided similar returns to private equity but with less volatility and the possibility of drowning your sorrows if all goes wrong!

So, how did alternative assets perform during the 2020? Did they offer an alternative to the roller coaster ride suffered by many assets? Download the PDF to learn more.

Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Important information

  • All data is as at 12 January 2021 unless otherwise stated.

    This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.

    Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals, they are subject to change without notice and are not to be construed as investment advice.