This is not substantive investment research or a research recommendation, as it does not constitute substantive research or analysis. This material should be considered as general market commentary.
As recently as ten years or so ago, most investors may have been happy with a portfolio of equities and bonds, typified by the 60:40 portfolio. After 2008 though, a decade plus of near zero interest rates led to a significant rally in bonds, a reduction in their yield and questions over whether they still offered the same level of return and diversification they once did. As such, many investors turned to alternative investments including the likes of infrastructure and renewable energy to improve yield and provide diversification to their portfolios. At the time, these were a nascent but growing asset classes, but their proliferation has since exploded, with a wide selection of trusts now available, offering a range of renewables including solar, wind and hydro, and infrastructure spanning from hospitals to data centres to laboratories. With these alternatives arguably now mainstream assets, we decided to consider a selection of the next generation of fledgling alts to see whether they have the credentials to become the next portfolio staple.
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