Alternative funds are available for investors seeking very specific risk exposures that have typical low correlations with equity and / or fixed income. Alternative funds include commodities funds, hedge funds and Private Equity funds etc.
Commodity funds are funds which allow you to participate in commodity markets, such as precious metals, energy or other commodities. Some commodity funds hold the physical commodities in which they have invested. Most funds, however, hold derivatives such as futures, options or swaps. Some of them can be in long and / or short positions to certain extents.
Hedge funds are funds which may employ a variety of alternative strategies, including long and short position strategies as well as derivatives with potential leveraging. It allows for specific risk exposure targeting while attempting to avoid or hedge away unwanted risks such as market risks.
Private Equity funds are investments in public and non-public companies or assets through privately negotiated transactions. Investment are directly into private companies or buyouts of public companies that result in a delisting of public equity. Private equity fund managers seek to acquire quality assets at attractive valuations and use operational expertise to enhance value and improve portfolio company performance.
This product may not be suitable for all types of investors. For more information on the features, benefits and risks of this type of investment, please contact your Relationship Manager.
- Provide a greater variety of potential return levels for each risk level
- Diversification from traditional asset classes
Funds are investment products. The investment decision is yours but you should not invest in the product unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.