Extraordinary monetary policy since the financial crisis has skewed investment returns and tightened the relationships between equities, bonds and property. This makes effective diversification much harder to achieve than ever before. Including liquid alternative products in portfolios has the potential to address this problem, aiming to provide diversification to your clients portfolios.
There are a wide variety of liquid alternative products. However, they share some common characteristics. They can provide genuine diversification whilst seeking to strengthen the risk/return profile of a portfolio in various market conditions. They may also use sophisticated investment tools like derivatives and techniques such as short selling to achieve their objectives. It is important to note that liquid alternative products are not providing a capital guarantee and may incur periods of loses for investors, in some cases the losses could be significant.
Over the past 20 years we have built one of the world’s largest liquid alternatives fund ranges. Our stable of internally-managed strategies is complemented by a handpicked selection of externally managed, normally hard-to-access, liquid alternative products. These are offered in a liquid, transparent and regulated way through our investment platform called GAIA.
Our liquid alternatives range is built with the aim of three key outcomes for investors. These include investment strategies seeking to deliver capital growth; investment strategies that exhibit low to no correlation with major risky asset classes such as equities, bonds, currencies and commodities; and also, investment strategies seeking to provide some level of limitation against the impact of inflation. For a wide range of clients’ needs, we have a broad range of solutions that could help.
Past performance is not a guide to future performance and may not be repeated.
The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.
Please note that there is no guarantee that liquid alternative products will achieve its objective.
Important information: The views and opinions contained herein are those of the authors, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This webpage is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the webpage when taking individual investment and/or strategic decisions. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. The data contained in this webpage has been obtained from sources we consider to be reliable. No responsibility can be accepted for errors of fact and the data should be independently verified before further publication or use. The sectors shown are for illustrative purposes only and not to be considered a recommendation to buy or sell. Exchange rate changes may cause the value of any overseas investments to rise or fall. In North America, this content is issued by Schroder Investment Management North America Inc., an indirect wholly owned subsidiary of Schroders plc providing asset management products and services as a US SEC registered investment adviser and in the capacity of Portfolio Manager with the securities regulatory authorities in Canada. For all other users, this content is issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.