- Practitioners adding alternatives to portfolios often fail to define a specific objective for the allocation.
- Since each alternative strategy is different – even those grouped in the same category – the allocation process can quickly become overwhelming.
- Strategically, investors should consider aligning the alternative solution’s objective with the long-term goals of the portfolio.
- Natixis Portfolio Clarity® has created a framework of four objective-oriented blended allocations from selected alternative investment strategies.
- Each alternative allocation exhibits risk, return and diversification characteristics that align with one of four specific objectives: alpha differentiation, volatility management, interest rate mitigation and downside mitigation.