Begin with the portfolio challenge, not the product. Does the client need other sources of diversification, return, or exposure to opportunities not be available through traditional public stocks and bonds? Alternative investments may fit their objectives.
Before allocating, understand how hedge funds, private equity, and private credit differ, along with their respective risks, structures, fees, and operational considerations and whether the client has the appropriate time horizon and liquidity capacity. This allows the advisor to introduce alternatives selectively rather than reconsidering their entire investment process.
We’re here to help. Talk to us about the different types of alternative investments on our platform. Wellington can help advisors examine where a capability may complement the managers they already use. Our platform encompasses more than 60 alternative strategies and over US$58 billion in alternatives assets under management, spanning liquid alternatives, hedge funds, and private investments. The goal is not necessarily to add more alternatives, but to make an allocation more intentional and better aligned with the outcomes your clients are seeking.