Alternative Investments

Opportunities to diversify your portfolio.

Overview

Offering unique investment opportunities designed to help you achieve your financial goals

  • Private alternative investments don’t fit into the conventional categories of stocks, bonds and cash. 
  • They are typically not publicly traded and are less liquid than other investment types. 
  • These types of investments tend to appeal to investors who are seeking higher returns and are willing to take risks to get them, or to those who want to invest in products that are not tied to the markets and thus may be less susceptible to market volatility.

Products and Features

Private Equity

Private equity investments typically take an ownership position in companies or securities that are not listed on a public stock exchange. They aim to create value in private businesses by financing growth, operational improvements or other change to help generate long-term gains. Generally, private equity has a longer time horizon and seeks higher returns by taking on higher levels of risk through financial leverage.

Private Credit

Private credit, also known as private debt strategies, typically invests in debt instruments that are privately negotiated and not publicly traded. These investments are usually originated by nonbank investors. Within private credit, there can be both an origination market (where private credit is initially created) and a secondary market (where investors can purchase previously issued credit). When investing in the private credit market, it is important to make sure you, the investor, understand where your investment falls in the capital structure hierarchy. Depending on the repayment strategy of the private credit instrument, potential risks and potential returns can vary significantly between these different strategies.

Real Estate

Real estate is a broad asset category in which returns are ordinarily generated from the capital appreciation of real assets and income generated by the rent production of the real estate holdings. Within real estate, there are typically four main property types: multifamily/residential, office, industrial/warehouse and retail. Potential risks and potential returns vary depending on the strategies and leverage of the real estate instrument.

Hedge Funds

Hedge funds typically either invest long (long investing is when an investor expects the value of an asset to rise in value in the future) or short (short investing is when the investor expects the value of the asset to fall). Hedge funds may use a broader set of underlying investments, including equities, fixed income, credit, commodities, currencies and futures. Hedge funds can typically create returns in multiple ways across the global landscape in an attempt to create a return for the investor in different market environments. Hedge funds may be less liquid, use leverage, have less transparency and charge higher fixed fees, including a performance incentive.

Additional Information

Before investing in any alternative investment, investors should review the prospectus or other offering documents, which contain important information, including the product’s investment objectives or goals, its strategies for achieving those goals, the principal risks of investing in the product, the product’s fees and expenses, and its past performance.

 

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