01
Understand the exposure
Identify what drives the investment rather than relying on a broad category label.
ANNEAU–GESTIONS · Investment approach
Alternatives
A broader investment universe. A greater need to understand the detail.
ExplorePurpose before portfolio
Look through the label.
Alternatives cover different assets and strategies rather than a single, uniform exposure. Their potential role needs to be assessed through the underlying source of returns, structure and risks.
Private equity belongs within this wider universe. Any proposed allocation should be considered against the institution’s investment horizon, liquidity needs, governance capacity and permitted investments.
A disciplined assessment
Evidence before allocation.
02
Examine the structure
Consider terms, costs, valuation arrangements and the responsibilities of the parties involved.
03
Test the fit
Assess how commitments and liquidity constraints interact with the rest of the portfolio.
The investment process
Understand the exposure.
Then assess its place.
Alternatives are assessed within the whole portfolio, with particular attention to liabilities, liquidity, underlying return drivers and investment structure.
Define the portfolio role
Start with the institution’s objectives, time horizon, obligations and liquidity needs. Identify what a proposed alternative exposure is intended to contribute.
Considerations Existing equity, credit and currency exposures; diversification assumptions; capacity to fund commitments and withstand loss.
Examine the asset and route of access
Look through the investment vehicle to the underlying assets and sources of return. Compare direct investments, listed vehicles and externally managed funds where permitted.
Considerations Manager and strategy assessment; fees; leverage; governance; valuation; redemption terms; counterparty exposure and exit arrangements.
Allocate, monitor and reassess
Size the exposure within the mandate and evaluate it alongside the rest of the portfolio. Revisit the allocation as market conditions, liabilities and the investment itself change.
Considerations Cash-flow needs; capital commitments; changing correlations; liquidity under stress; rebalancing and investment reporting.
Portfolio needs and investment evidence are reassessed throughout the holding period.
Different investments. Different liquidity.
The source universe includes commodities and currency strategies, listed property, hedge funds, real estate, infrastructure and private equity. These are research categories, not a statement that every strategy is offered or suitable for every GESTIONS mandate.
Liquidity depends on the instrument and its terms—not simply its category. Listed vehicles may trade daily yet be difficult to sell at an acceptable price in stressed markets. Private funds may impose lock-ups, notice periods, gates or extended realisation periods. Long-term obligations alone do not justify an illiquid allocation.
Private equity has a distinct acquisition, ownership and exit process. It is developed separately within this alternatives universe, so its governance and funding commitments can be examined in appropriate detail.
Explore the private equity processKeep the risks in view
Opportunity is not certainty.
Alternative investments may involve leverage, limited liquidity, valuation uncertainty and complex structures. Diversification does not eliminate the possibility of loss.
Explore further
Keep the whole portfolio in view.
This describes an investment framework, not a personalised recommendation or a commitment to offer every asset class. Availability depends on the responsible entity’s permissions and the agreed mandate. Investments involve risk and capital is not guaranteed.