The Dynamics of Alternative Investments

The dynamics within the global investment markets are ever-changing. And how this is embraced will impact your overall performance.

From external factors that affect investments (COVID-19) to factors that result in lost opportunities (timely decision-making) are ever present.

Additionally, assisting these factors, are applications that provide instantaneous communications as well as cloud-based software allowing for calculated and informed decision making.

Today, it is about understanding the investment environment with the ability to be agile in your approach whilst timely in your execution.

It is all about speed-to-market.

Positioning one’s self to take advantage of opportunities for tomorrow is a key thematic, especially with the growing appetite in alternative investments.

Traditional asset classes have always been at the core of many investment portfolios, but those seeking to generate returns uncorrelated to the markets are focusing on alternative investments.

Alternative investments allow investors access to a broader universe of investment strategies.

A key reason is not only the ability to potentially generate better returns, but also the growing popularity of income stream diversification (private debt, infrastructure) on top of investing in newly formed industries that are innovative and provide real world solutions (agritech, medtech) – the latter focused on a long term outlook.

Private market opportunities such as real estate, private equity and venture capital are increasingly gaining further momentum. With interest rates as low as they are, diversification strategies are embracing allocation into these alternative opportunities.

40% of institutional investors said that over the course of 2020, increasing capital allocations to private equity, private debt, real estate, and infrastructure was planned (Source: Prequin Investor Outlook/Alt Investments 2020).

PwC market analysts attribute the rising tide of investment within alternatives to three major catalysts: shift to individual retirement plans, emergence of new sovereign investors as well as the increase in high-net-worth individuals from emerging markets.

With interest rates as low as they are, diversification strategies are embracing allocation into these alternative opportunities.

At AST Fortis we focus on having access to such opportunities, understanding the risks and being able to forecast the value for tomorrow that requires the knowledge and skills to recognise these opportunities in an ever-changing investment landscape.