Whitepaper Provides Understanding into Various Alternative Asset Categories
A new whitepaper from Invesco discusses the difficulties in managing risk with strictly a 60-40 stock-bond portfolio and highlights some of the new alternative asset classes that advisors can use to help reduce risk in client portfolios. This is especially important for advisors, since 44% of advisors see managing risk for client portfolios as their #1 priority. The paper discusses the weaknesses of MPT, how alternatives help with portfolio construction, and provide a brief overview of the major alternative asset class categories and subcategories, including: Long/Short equity, Unconstrained Equity, Bank loans, Currencies, Hedged Equity, Private Equity, Equity market neutral, Absolute return fixed income, Managed futures, Commodities, Real Estate, Infrastructure, and Master limited partnerships (MLPs).
