Why invest in alternatives?

Part 2 of our “summer school” series on alternatives

As highlighted in my previous blog, What are alternative investments, I’m embracing the spirit of summer school with a series of four blogs reviewing the basics of alternative investments. Part 1 explained what alternative investments are. In this installment, I explore why an investor should consider investing in alternatives.

Why use alternatives?

Like stocks and bonds, alternative investments are simply tools used by investors in an effort to achieve their investment goals. Given their unique characteristics, alternative investments have the potential to help investors meet three key objectives:


What are alternative investments?

Part 1 of our “summer school” series on alternatives

Most will agree that one of the least enjoyable summer traditions is summer school. I got a vivid reminder of this the other day when I put my youngest son on the bus for his summer classes, then had flashbacks to my own summer before 9th grade when I did the same thing. But while summer school is not particularly fun (at any age), it can be extremely valuable.

In my experience, summer school gave me a preview of material I needed to know for the upcoming year and allowed me to catch up on any previously covered material that was difficult to master. Regardless of the reason for our summer “sentence,” we all emerged from summer school smarter and better prepared for the upcoming year.

With this in mind, I thought I would use this summer to write a series of blogs covering the basics of alternative investments. My hope is the series will provide an opportunity for people to become more familiar and comfortable with this topic and be more informed investors as we head into the second half of 2017.

What are alternative investments?


Private equity: What investors need to know

You won’t find these funds in your 401(k), but some in the industry want to change that. Find out why.

While private equity funds are currently off limits to retail investors, many large firms in the industry are seeking ways to include private equity exposure in 401(k) accounts and target date funds.1 Providing retail investors with private equity fund options would be a welcome development, in my view, potentially enhancing their ability to build effective portfolios for more secure retirements.

Institutional and high net worth investors have long been attracted to private equity for its potential to deliver returns above those of public equity markets. To understand why, let’s take a closer look at this asset class.

What is private equity?


In an online world, do malls matter?

Suburban shopping malls are still an important real estate sector, but quality is critical

Rodriguez_Joe_sm_150dpi_RGB Chris Faems

For decades, real estate watchers have periodically claimed that suburban shopping malls are dying. Catalogs and TV shopping channels have been seen as serious threats — yet the mall has remained a suburban staple. Today, as online shopping dominates the market and high-profile department stores experience closures and bankruptcies, we’re hearing this familiar refrain once again. Despite the challenges, Invesco Real Estate believes brick-and-mortar locations will continue to be crucial to retailers — but identifying the properties with the potential to succeed may be more critical than ever.

Retail stores have a history of adapting to change


Alternative strategies: What have the past three years taught investors?

We highlight three key lessons learned, and one that may yet be in store

Davis_Walter_sm_150dpi_RGBWhen I joined Invesco in 2014 and started blogging about alternatives, alternative investment strategies were fairly new to individual investors; most of these mutual funds had track records of less than three years. At that time, many people didn’t know what to expect from this asset class, which gives investors exposure to a broad range of opportunities outside of traditional, long-only stock and bond holdings.1 Today, with the ability to look back over the past three years, there are three key lessons that investors can take away about alternative investment strategies:


Infrastructure investing: From concrete to computer chips

Learn why Invesco Unit Trusts views information technology as a critical part of the infrastructure category

Nick Clare

Nov. 9, 2016, was not only the day Donald Trump won the presidency; it was also the day that investors’ interest in infrastructure investments was reborn. Since President Trump was elected, expectations for a rebound in infrastructure spending have reached heights not seen in some time. Given President Trump’s purported $1 trillion infrastructure plan, there is reason to be excited. But we at Invesco Unit Trusts believe that having the proper context into what infrastructure represents today is key to successfully investing in the theme.

Expanding the definition of ‘infrastructure’