Non-traditional investments have long been used by institutional investors to help them achieve their growth objectives and soften the impact of a market decline. While there are an unlimited number of nontraditional investments, we at UBS Financial Services Inc. focus on two broad categories: alternative investments and structured products. Alternative Investments Alternative investments are privately managed investment vehicles available to qualified investors.1 They generally include: - Hedge funds
- Hedge fund-of-funds
- Managed futures
- Private equity
- Exchange funds
Structured Products Structured products are customized securities that can provide a complement to direct investments by combining the characteristics of traditional investments (stocks and bonds) with financial derivatives (options, futures contracts, swap agreements). The Case for Non-Traditional Investments Non-traditional investments can provide: - Access to markets and investments typically not available to individual investors
- Greater diversification beyond stocks and bonds
- Options for managing a portfolio during periods of market uncertainty
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