The question was risk and the answer was alternative investments as Natixis Global Asset Management hosted a media luncheon on Thursday at Per Se in New York.
According to a Natixis survey also released Thursday, nearly half of American investors fear losing their money due to current market volatility. Yet four in 10 are not interested in alternative products and strategies that could potentially diversify portfolio returns, says the French-owned firm with $773 billion of assets under management.
This is a problem for advisors, said Tracey Flaherty, senior vice president of retirement strategy at Natixis. “Important alternatives conversations are not taking place with clients,” Flaherty said, asserting that “durable” investment portfolios that incorporate alternatives such as absolute return, hedged equity and emerging markets can provide returns uncorrelated to the markets’ gyrations.
Three portfolio managers from Natixis’ multi-boutique line-up offered their thoughts on alternative investments that can help advisors manage risk: