Diversifying your portfolio is the one principle every professional investor agrees on. But how to do it without sacrificing returns? At Mercer, we believe the answer is to maintain a meaningful allocation to a diversified portfolio of alternatives.
"Alternatives are the best way of safeguarding portfolios against the risk of equities and bonds both performing poorly at the same time."
Alternative investments provide a solid opportunity to guard against the volatility of equities, hedge against inflation, and achieve better returns. History shows that hedge funds can provide a great way to diversify out of equities without sacrificing returns, and private equity can attain a significantly higher rate of return than publicly traded equities, whereas real assets such as infrastructure and real estate can provide elements of both these qualities as well as a measure of protection against inflation.
"Mercer has strong credentials in alternatives — deep global research resources and strong long-term track records in all of the key areas."
At Mercer, we’ve been researching, advising on, and executing alternative investments for more than two decades. We help clients identify the appropriate fund managers based on their risk/reward requirements, and we have significant experience helping clients construct a suitable portfolio that meets their needs.
Mercer’s global footprint allows us to closely follow the complex and dynamic alternatives market. Currently, we’re tracking more than 2,000 different alternative investments across the world.
Although Mercer focuses in providing research, guidance, and execution of an alternative investment strategy, that’s just one part of our larger investments business. We have the capability to work with clients to put together a holistic plan — one that seeks to reduce risk while maximizing returns.
Mercer alternative investments provide a solid means to guard against the volatility of equities, hedge against inflation, and achieve better returns.