Strategy Update: Liquid Alternative Assets

Genevieve Signoret

(Hay una versión en español de este artículo aquí.)

Where are we in this series?

This is one more post in a series laying out our current portfolio strategies. This time our focus is on liquid alternative assets, or liquid alts. We explain how we use the term liquid alts here. In our prior two posts, we covered fixed income and equity.

Where are we positioned in liquid alts?

We’re holding real estate investment trusts; agricultural commodity futures; and assets linked to energy infrastructure.

Real Estate

In real estate, our focus is on developed markets. For U.S. residents, this means properties located inside the United States. Within developed markets, U.S. property is outperforming non-U.S. property somewhat. Also, our U.S. clients face no fiscal efficiency loss by investing in American property exclusively.

By contrast, to ensure fiscal efficiency for clients residing in Mexico, we’re providing exposure to real estate through a Europe-domiciled fund weighted heavily (62%) but not exclusively toward U.S. properties. The fund holds properties additionally in Japan, Hong Kong, the UK, Singapore, Australia, Canada, Germany, France, Switzerland, Sweden, and Belgium.

Agricultural Commodities

In agricultural commodities, the fund we hold is an index fund allocated across sugar, cocoa, live cattle, soybeans, coffee, corn, lean hogs, wheat, feeder cattle, and cotton.

Energy Infrastructure

In energy-infrastructure–linked assets, we’re invested in pipelines, storage facilities and so forth all used to transport, store, gather, and process natural gas, natural gas liquids, crude oil, and their derivatives.

Where can I review some key strategy concepts?

• Our Investment Approach: Equities
• Our Investment Approach 2: Fixed Income
• Our Investment Approach 3: Liquid Alternative Assets

P.S. We look forward to your presence on September 8

Don’t forget to sign up for the TransEconomics webinar taking place on September 8 at 9:00 Mexico City time. This international event to be held in English is titled “Our Outlook and Your Wealth”.

You can sign up here in seconds.