When people think about investing, they usually think about investing in stocks and bonds. An alternative investment is a financial asset that is not your conventional investment – it is not stocks and bonds. Rather, alternative investments are investments that are not typically available to public investors. These types of investments would include private equity or venture capital, real estate and other hard assets, hedge funds, managed futures, art and commodities (precious metals, oil and gas). Because they are outside of the conventional investment universe, they provide investors with an opportunity to diversify their portfolios and benefit from non-market correlated returns (as well as other benefits).
access provides the opportunity to invest in the following classes of alternative assets:
- Transportation: commercial aircraft and engines; railcars, locomotives, and containers; truck fleets; ships
- Real Estate
- Infrastructure: toll roads/bridges/tunnels, cellphone towers, wind/solar/geothermal/battery energy “farms”, power plants, oil rigs, etc.
access will be adding other alternative asset classes in the future.
What are the benefits of investing in alternative investments?
- Diversification: it helps provide diversification of an investor’s investment portfolio. This diversification reduces risk and volatility for the overall portfolio because alternative investments have a low correlation to the stock and bond markets
- Higher Returns: they have the potential to provide investors with higher returns relative to conventional investments. Factors such as credit and asset risk, liquidity risk or leverage can impact these returns
- New Opportunities: access will be able to offer investment opportunities in new and exciting markets. Adding investment exposure in these areas enhances portfolio diversification