Speaking to InvestorDaily, Certitude product and investments manager Nicholas Revis said there is an “imbedded perception” by investors that alternative investment strategies are too risky.
“Managers spend a lot of time not only looking at the investment side of things but they also spend a lot of time looking at the operational side of things,” Mr Revis said.
Mr Revis also explained that fund managers spend “lots of time” assessing where money can be invested, how much money can be made and the “downside” risk to ensure the best outcomes for investors.
“At the end of the day you [want] to be compounding your capital at a rate which is greater than inflation – it is all about protecting your savings, regardless of what stage you are at,” Mr Revis said.
Mr Revis also pointed out that investors should not be focused on one single investment strategy, but rather be looking to find “the right balance” between traditional and alternative strategies for their portfolio.
“Over time and depending on the risk return profile you might gravitate [strategies] more or less but that comes down to asset allocation,” Mr Revis said.
“[Also] it is about [the] risk objective and that [investors] have a broad exposure to a number of asset classes and making sure what [they] are picking inside those asset classes is delivering,” he said.
“I think what it is about is having best in class in each of those asset classes and ones that can navigate through certain market conditions,” Mr Revis said.
