How to Invest in an Alternative Fund

As Standard Life GARS and other alternative strategies fail to deliver in 2016, we consider the guidelines for investing in these types of funds

Dan Kemp 19 January, 2017 | 8:00AM

As equity prices move higher, deposit rates hover near zero and bonds remain expensive, investors are increasingly struggling to find attractive investment opportunities in traditional assets. It is therefore unsurprising that alternative UCITS funds have been one of the most popular destinations for European investors’ capital in 2016 with €21 billion flowing into funds in these categories in the first three quarters of the year.

Currency volatility was a key driver of returns last year

While it has become the standard practice among investors to lump these funds together as a single group, alternative UCITS funds represent a bewildering array of strategies, demonstrated by the fact that Morningstar currently tracks 20 alternative categories across Europe.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Aviva Investors Mlt-Strat Trgt Ret 2£Acc110.51 GBP-0.06
JPM Global Macro Opportunities A Net Acc0.75 GBP-0.20
SLI Global Absolute Ret Strat Ret Acc78.73 GBP0.10

About Author

Dan Kemp

Dan Kemp  is Chief Investment Officer, Morningstar Investment Management EMEA

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