Adding Alternatives to an Investment Portfolio – Part 3; Investing Like an Endowment Fund

Part 3 of a series of articles about adding / increasing Alternatives in a Portfolio.

The attached article is a recently published article via the CAIA: Investing Like the Harvard and Yale Endowment Funds.

My previous Posts have outlined the potential benefits of adding Alternatives to a portfolio. This article provides some evidence of the benefits of adding alternatives to a portfolio.

The Endowment Fund success has come from having more than just absolute return funds i.e. hedge fund alternative strategies, but also exposure to real assets have played a part, including a Private Equity exposure. Many Australian Super Funds have benefited from their exposure to unlisted infrastructure and Property.

New Zealand Portfolios generally lack exposure to real assets, private equity, absolute return funds, and alternative strategies.

The Top performing Endowment Funds have benefited from “true diversification”, they have benefited from their allocation to alternative asset classes.

“Their long term investment strategy has prevailed to the extent that long term total and risk adjusted returns remain superior to those of traditional portfolios.”

 

CAIA Investing like an endowment

 

Please see my Disclosure Statement

 

3 thoughts on “Adding Alternatives to an Investment Portfolio – Part 3; Investing Like an Endowment Fund

  1. Pingback: Investment Fees and Investing like an Endowment – Part 2 | Kiwi Investor Blog

  2. Pingback: Further growth expected for an Alternative future – Prequin | Kiwi Investor Blog

  3. Pingback: KiwiSaver Investors are missing out | Kiwi Investor Blog

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