Alternative investments

BT Investment Management’s alternative investments are a result of our commitment to the research and development of new investment opportunities for the benefit of our clients. BT IM’s alternative investment solutions team is focused on sourcing and delivering attractive investment strategies outside traditional asset classes.

We believe there are sources of risk other than market risk that should be included in investment portfolios as part of the natural process of diversification. Alternative investment solutions provide the opportunity to seek sources of risk/return other than market risk/return.

Alternative investments:

  • fall outside the traditional investment classes of shares and fixed interest
  • have drivers of return which are generally independent of the price performance of the broad listed markets
  • provide a pattern of return that complements traditional asset classes
  • are often designed to deliver a positive return regardless of the investment climate

A brief description of our alternative investments follows.

Hedge fund strategies

BT IM offers investment capabilities in both inhouse and external multi-manager funds-of-hedge funds. These investments provide an absolute return focus and can enable diversification through the combination of a number of uncorrelated strategies.

Diversification is a key driver in our alternative investment strategies. Our hedge fund programs are diversified in that they are:

  • multi-manager
  • multi-jurisdictional
  • diversified with respect to management decisions — BT manage an internal fund of funds, Grosvenor Capital manages an external fund of funds.

Commodities strategies

BT IM offers investment capabilities in active commodities strategies.

BT IM’s active commodities strategy is a multi-manager structure which allows active decisions to be made relative to the benchmark. The investment is long only and does not allow any leverage. Active decisions include raising cash and changing the allocation to various sectors in the commodity markets.

BT IM’s alternative investments are ideal for investors looking to establish a well-diversified portfolio outside traditional asset classes and to increase the potential return and lower the risk of their overall portfolio.