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Alternative investments

Alternative investments offer an efficient wealth diversification tool thanks to their absolute performance targets and their low correlation to traditional markets.

They use innovative management techniques and a wide range of financial instruments. These management techniques offer a weak correlation to equity and bond markets, with the objective of conserving capital in declining markets and capturing significant upside performance in rising markets.

Fund Solutions analysts select the most renowned alternative funds through an extremely rigorous due diligence process, assessing risk, transparency and monitoring asset liquidity.

Our Fund Solutions desk provides access to the best fund managers available in the marketplace. Starting from a universe of over 67,000 funds, the team evaluates over 150 fund management firms, holding more than 600 research meetings annually. This allows our advisers to select from the best available funds for your portfolio.

What is the investment universe?

The alternative investment universe can adopt of a number of investment strategies which can comprise hedge funds, commodities and private equity.

Hedge funds

Hedge funds are unregulated investment schemes that cater for sophisticated, experienced investors. As an alternative investment, hedge funds seek to produce returns in all market conditions using advanced and diverse strategies possibly involving leveraging and short selling. Investments in hedge funds may be illiquid, and high volatility in the value of the fund may result in loss to capital. SGPB Hambros can advise suitable clients on hedge fund investments in line with their portfolio requirements.

Typical hedge funds include:

  • Long/short equity
  • Relative value
  • Directional trading
  • Event driven

Funds of hedge funds

Such funds offer a dynamic allocation between several strategies and several hedge fund managers.

Altenative Funds - UCITS III

The UCITS III regulation makes it possible to access the alternative management universe in a liquid and transparent format that is regulated by European law.

Commodities

Commodities, such as earth minerals, precious metals and agricultural crops, can be invested through the use of specialist funds. Commodities offer diversification from traditional assets and are a typical counter to inflation and currency devaluation. SGPB Hambros are also able to offer tailored structured products on a basket of commodities.