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Alternative investments | Why managing risk matters more than chasing returns


For years, alternative investments were valued for boosting returns. Now, as markets grow more volatile and future returns harder to predict, their role in portfolios is evolving.

For group retirement savings plans, that shift raises an important question: what value can alternatives bring beyond return potential?

Private credit, real estate and infrastructure can provide exposure to different sources of return and income than traditional stocks and bonds. Understanding how these strategies behave, and where they fit, can help you and plan sponsors think differently about portfolio construction.

Discover why more plans are considering these strategies in our alternative investments article in Insights. You’ll learn:

  • How alternatives behave differently from stocks and bonds and why that matters
  • How alternatives are becoming more accessible in group retirement savings plans
  • Why risk-adjusted returns can outweigh performance and where the risk still lies 

 

Putting the strategy into practice

The shift toward alternatives is already taking shape in our line of business. They’re being integrated into turnkey solutions, including the ATTITUDE target-date portfolios, while expanding access for plan members. Jean-Philippe Renaud, who leads our investment strategy for group retirement savings plans, explains the thinking behind the approach and what it means for members.

Putting the strategy into practice

Read the full article to learn more.

 

In a market downturn, alternative investments can decline as well, but the magnitude and timing of those declines often differ from what we see in traditional public markets.”

Jean-Philippe Renaud
Manager, Investment
Group Benefits and Retirement Solutions 

 

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