S&W's Burns: My four alternative investment trust asset classes

Investment trusts

James Burns, head of multi-manager at Smith & Williamson, looks at four alternative asset classes in the closed-ended space which could offer growth alongside core holdings.

How can managers use alternative asset classes to complement those vehicles which are considered as focusing on the ‘core’ asset classes? While there was a broad selection of ‘alternative’ investment companies that existed prior to the global financial crisis, over the past five years we have seen their number multiply considerably. This has been driven primarily by the hunt for yield in a low interest rate environment, and historically low correlations to traditional asset classes. Investment companies, as permanent capital vehicles, are accepted as a more appropriate structure th...