STEPHEN CRANSTON: Returns from alternative assets can help offset slowing performance of listed equities
Private equity has the clearest positive return pattern of any of the options, outperforming the S&P 500 index by 2%-3% over long periods
Concerns about low returns from traditional asset classes can be addressed by diversifying into alternative investments. Gavin Ralston, head of thought leadership at London-based Schroders, gave this message at Sanlam’s i3 summit last month.
Ralston argues that better returns are possible at lower risk by introducing greater choice to client portfolios. He warns that investing in alternative asset classes is not easy and it will take a great deal of work from financial advisers and asset managers to make the right solutions widely available, but believes it is definitely worth pursuing.