Alternative investments through private markets and hedge funds
Why investors look to allocate to alternative investments
Alternative asset classes can be incorporated into a wide range of investment strategies, styles and risk profiles. This gives you many options to build a portfolio to suit your investment needs — whether you’re looking for new sources of returns or simply want to diversify away from traditional listed equities and bonds.
Alternative investments provide an opportunity to guard against the volatility of equities, hedge against inflation, and achieve better returns. Hedge funds may provide a great way to diversify out of equities without sacrificing returns. Private equity investments aim to attain a higher rate of return than publicly traded equities. Real assets, such as infrastructure and real estate, seek to provide similar benefits alongside a measure of protection against inflation. The impact investing market offers diverse and viable opportunities for investors looking to advance social and environmental solutions through investments that also produce financial returns. Our global scale and resources can help you access all types of alternative investments, tailored to your needs.
Types of alternative investments
Potential benefits of alternative investments
New ideas, innovation and diversificationWith moderate correlation to traditional asset classes, alternatives can diversify your portfolio and introduce new innovative ideas and strategies.
Potential for better returnsAlternative investments offer a different return profile for an institutional portfolio. They tend to have low correlation to stocks and bond markets, adding diversification or hedging against market downturns.
Integrate ESG, DEI and impactThere are a growing number of sustainable investing strategies in private markets. These offer the potential for you to address your business objectives and develop a holistic plan that seeks to reduce risk while maximizing returns.
Three considerations for alternative investments
Integrating alternative investments into your portfolio
Access manager researchMercerInsight®, an alliance with eVestment, provides access to insights and analytics on more than 6,700 managers and 35,000 strategies1. Get MercerInsight®.
Seek adviceWe can provide guidance and advice on your alternatives strategy, alongside access to our global manager research network. We'll help you build your portfolio. Contact us today.
Implement a solutionWe can help you design and implement an investment plan to suit your needs and complement your strengths. Our offering includes our fully outsourced chief investment officer (OCIO) or fiduciary management services. Discover our solutions.
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Alternative investment strategies***
Co-investmentsCo-investments have the potential to deliver greater diversification, lower fees and higher net returns and, provide a more tailored exposure set.
Impact investingImpact investments have the potential to help you find an optimal balance between making a positive change and delivering better returns.
InfrastructureInfrastructure investments have the potential to deliver greater diversification, inflation protection and longer-term sustainability.
Private debt and creditPrivate debt strategies have the potential to deliver a higher-yield than listed bonds and retain the potential for capital growth.
Private equityPrivate equity strategies leverage opportunities from the vast number of companies listed under private ownership.
Real-estateInvesting in real-estate is linked to important sectors of the real economy, including long-term trends such as population shifts.
Secondary investmentsSecondary investments have the potential to deliver greater diversification and put your money to work faster than in primary markets investments.
Hedge fundsHedge funds are designed to provide diversification in relation to both equity and interest rate risks with minimal give-up in return.
Diversity, equity and inclusionDEI investing is about allocating to diverse-led funds, run by women or people of color, primarily within the private equity sector.
Our alternative investments approach can flex to suit you
- 1 Client-centric flexible approach
- 2 Extensive research platform
- 3 Global reach, local resources
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* Past performance is not a guarantee of future results. The value of investments can go down as well as up, and you may not get back the amount you have invested.
** Mercer cannot guarantee access to opportunities. Access is at the discretion of the investment manager.
*** There is not guarantee these objectives will be achieved.
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