A variety of customized alternative financial instruments
A comprehensive study conducted by the Yale University in 2014 shows that affluent clients and High Net Worth families with a very long-term investment horizon are preferring unique, alternative investments because they are able to take greater “unconventional” risks. An alternative investment is any investment that is not traditional, meaning one that is not correlated to the stock or bond markets. For a wide range of reasons, most alternative investments are not accessible to the majority of investors as traditional investments are.
Did you know? Adding an alternative element to a traditional investment portfolio can actually lower the overall risk of the portfolio. This is because the correlation between traditional and alternative investments is low. Adding alternative investment to a traditional portfolio will actually reduce the portfolio volatility.
For over 30 years, Pioneer has been providing clients around the world Wealth Management services, and a variety of investment solutions in accordance with their specific needs, personal risk profile and timespan of the investment. Some of those include a variety of alternative investments, such as:
- Venture Capital funds
- Private Equity
- Real Estate: Various projects and funds in Israel and abroad
- Structured Products (with full transparency)
- Hedge Funds
- Consumer Credit
- Real Estate Secured Lending
- And more
All investment options, including alternative products, undergo careful analysis by our research department, to assess their nature as well as their inherent risks.
For the most part, the instruments we offer have limited liquidity, higher minimums and, of course, different risk than those in traditional asset classes (bonds and equity). For this reasons, investing in them is not suitable for every investor.
The following guidelines can be used for considering alternative investments:
- Your financial assets are managed with a long-term view and you have no need for liquidity in the near future
- Your overall financial position allows for the allocation of relatively large sums to specific/single investments
- You have a relatively high-risk profile due to the structural risks associated with alternatives
- You are looking to diversify a traditional and standard investment portfolio