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Alternative Investments |
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Instrata Capital focuses on alternative and specialised asset classes. Traditional asset classes such as fixed income bonds and equities are attracting lower overall portfolio asset allocations as global and regional investors search for diversification and investments that can generate consistent above market returns. Instrata Capital believes that portfolio allocations to alternative asset classes will continue to grow and that investments outside of listed securities (such as equities and bonds) will become increasingly important.
Investments that do not fit into the traditional classification of the major asset classes are called alternative investments. Examples include, but are not limited to, real estate, infrastructure, private equity, venture capital, buyout, mezzanine financing, natural resources (commodities) and hedge funds.
Various studies have demonstrated that alternative investments have a low correlation to the traditional asset classes of bonds and equities. Other studies argue that there are certain types of alternatives that could substitute defensive assets in a portfolio, as they provide significant diversification benefits in times of equity or bond market weakness.
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