Fiddich Review Centre
Alternative Investment

The importance of Alternative Investments for a diversified portfolio

Learn ways to help increase your returns while focusing on the long term
A chart showing different investments including alternative ways to invest

Experienced investors know there are plenty of chances to invest beyond conventional financial assets. Alternative investments are one great example and include things like private equity or venture capital, art and antiques, real estate, and more. Basically, these are investments that do not fall into traditional investment categories like stocks, bonds, and other more obvious forms of financial investments. However, they are important pieces of a well-rounded financial portfolio for accredited investors or qualified purchasers.

Headshot of Andrew Burish

“It has become increasingly important for investors to consider exposure to private markets,” says Andrew D. Burish, Managing Director and Financial Advisor at UBS Financial Services Inc. “In our view, private markets offer a combination of high potential returns, a long-term focus, and access to innovative and fast-growing businesses,” he explains. “Essentially, alternative investments give investors access to a wider universe of unique investment opportunities.”

It is important to have the right financial advisors on your side. These professionals can help perform extensive due diligence if you are considering alternative investments. The Burish Group at UBS has access to many different alternative investment platforms. “Including private investments in a portfolio strategy can help diversify return sources, boost return potential, and reduce volatility,” he says. Indeed, historically speaking, private markets have performed well over public markets since 2005, says Burish.1

In other words, increasing the different types of investments you have can benefit you in the long run. While some investments prove unsatisfactory, other investments may not. “For example, modifying a traditional 60% equity — 40% bond portfolio to include 30% to alternatives would have increased annual portfolio returns almost 1.4% while lowering realized volatility by -1.6%,” says Burish. “Our financial advisors can help determine the appropriate alternative investment allocation that aligns with you and your financial needs and goals.” Contact The Burish Group at UBS today to find ways to diversify your portfolio with alternative investments. •

1 Historically, private markets have performed well over public markets. In almost every calendar year since 2005, a private investment strategy — whether US private equity, us private debt, or global private real estate — has outperformed US large-cap equities.
Alternative Investments US of UBS Financial Services Inc. provides investment management services to qualified high net worth and institutional clients. Eligibility requirements begin, generally, at a net worth greater than $1.5 million for individuals (with spouse) and $5 million for entities. This is not an offer to purchase or a solicitation to sell any security. Investors should be aware that alternative investments are speculative, subject to substantial risks (including the risks associated with limited liquidity, the use of leverage, short sales and concentrated investments), may involve complex tax structures and strategies, and may not be appropriate to all investors. Alternative investments may be illiquid, they may not be required to provide periodic pricing or valuation information to investors, there may be delays in distributing tax information to investors, they are not subject to the same regulatory requirements as mutual funds, and they may be subject to high fees and expenses, which will reduce profits. Alternative investments are not deposits or obligations of, or guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other governmental agency. They should not constitute an entire investment program. Past performance is no guarantee of future results. Asset allocation and diversification strategies do not guarantee profit and may not protect against loss. As a firm providing wealth management services to clients, UBS Financial Services Inc. offers investment advisory services in its capacity as an SEC-registered investment adviser and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that you understand the ways in which we conduct business, and that you carefully read the agreements and disclosures that we provide to you about the products or services we offer. For more information, please review the client relationship summary provided at ubs.com/relationshipsummary, or ask your UBS Financial Advisor for a copy. © UBS 2023. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC. Approval date: 1/4/2023; Expiration:1/31/2024; Review Code: IS2300050

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