common investment risks and influences; like inflation and interest rates.
Aon Hewitt research clearly illustrates that there is an increasing
willingness of trustees and advisers to consider a wider range of asset
classes, than has historically been the case before. The data further
suggests that trustees are now much more prepared to accept that investing in alternatives
has both a key role to play in reducing portfolio risk and may also
offer the chance of producing very attractive returns. It also seems
that pension funds are more prepared to hire third party expert
consultants to expand their range of investment options.
The fact of the matter is that alternative assets have repeatedly demonstrated they are an excellent option to help investors beat rising inflation
and reduce risk in their investment portfolio. And although private
investors may have started the movement toward alternative investments
post-2008, an increasing number of pension funds, financial institutions
and investment banks have been swift to re-allocate their capital to
the growing list of alternatives, in an effort to provide clients with
long-term capital growth and lower their over-all exposure to risk.