The case for, and interest in, alternative investments goes beyond the rising correlation between equities and fixed income investments. The increasingly sophisticated needs of high-net-worth investors, macroeconomic drivers and recent developments are driving greater use of alternatives in investor portfolios.
Through interviews with alternative investment managers and providers, this whitepaper from BNY Mellon’s Pershing discusses these critical considerations and provides an overview of the current alternative investment landscape. The paper focuses on three largely illiquid alternative investments: non-traded real estate investment trusts (non-traded REITs), private equity vehicles and hedge funds. While not appropriate for all investors, these investments are now more accessible to a broader market and therefore should be evaluated for inclusion in portfolios to help protect against volatility and potentially realize better risk-adjusted returns.
BNY Mellon’s Pershing and its affiliates provide a comprehensive network of global financial business solutions to advisors, broker-dealers, family offices, hedge fund and ’40 Act fund managers, registered investment advisor firms and wealth managers. Many of the world’s most sophisticated and successful financial services firms rely on Pershing for clearing and custody; investment, wealth and retirement solutions; technology and enterprise data management; trading services; prime brokerage and business consulting.
Pershing helps clients improve profitability and drive growth, create capacity and efficiency, attract and retain talent, and manage risk and regulation. With a network of offices worldwide, Pershing provides business-to-business solutions to clients representing approximately 7 million investor accounts globally. Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon company.