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An introduction to alternative investments

October 30, 2020
clock 3 MIN READ

The chief merit of diversification—improved risk-adjusted returns—is a product of combining strategies with a variety of correlations so that a portfolio’s volatility is lower than the volatility of the individual strategies it employs. Periods of high uncertainty—when forecasting ability deteriorates and market-level volatility surges—can showcase the benefits of broad diversification.

Alternative investments pursue strategies that diverge from conventional long-only opportunities in equities and fixed-income asset classes. We believe the distinct set of strategies offered by alternatives can enhance a portfolio's diversification, thereby improving upon the risk-reduction and return-enhancement opportunities that traditional asset classes can offer.

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Important Information

This material is not directed to any persons where (by reason of that person’s nationality, residence or otherwise) the publication or availability of this material is prohibited. Persons in respect of whom such prohibitions apply must not rely on this information in any respect whatsoever. Investment in the funds or products described herein are available only to intended recipients and this communication must not be relied or acted upon by anyone who is not an intended recipient. Whilst considerable care has been taken to ensure the information contained within this document is accurate and up-to-date, no warranty is given as to the accuracy or completeness of any information and no liability is accepted for any errors or omissions in such information or any action taken on the basis of this information. These SEI Alternative Investment Funds are nonstandardised and bespoke, and usually invest in a variety of underlying assets such as shares, debt securities, commodities or mutual funds. Alternative Investment Funds by their nature involve a substantial degree of risk, including the risk of complete loss of capital and are only appropriate for parties who can bear that high degree of risk and the highly illiquid nature of an investment. SEI Alternative Investment Funds often engage in leveraging and other speculative investment practices that may increase the risk of investment loss, are not required to provide periodic pricing or valuation information to investors, involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements and mutual funds, and often charge higher fees. Investments in SEI Funds are generally medium to long term investments. The value of an investment and any income from it can go down as well as up. Investors may not receive the full amount invested. Fluctuations or movements in exchange rates may cause the value of underlying internal investments to go up or down. Investors may not get back the original amount invested. SEI Funds may use derivative instruments which may be used for hedging purposes and/or investment purposes. This information is issued by SEI Investments (Europe) Limited (“SIEL”), 1st floor, Alphabeta, 14-18 Finsbury Square, London EC2A 1BR, United Kingdom. This document and its contents are directed only at persons who have been classified by SIEL as a Professional Client, for the purposes of the FCA Conduct of Business Sourcebook. SIEL is authorised and regulated by the Financial Conduct Authority. 

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