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Why multi-asset strategies for alternatives? Multi-asset investing brings something very
powerful and very unique to a portfolio. Most portfolios have a significant amount of bottom-up
diversification. What that means is most portfolios have many managers in each asset class selecting
individual securities. Multi-asset investing invests across the asset
classes, across U.S. equities, non-U.S. equities, U.S. and non-U.S. bonds, and across currencies,
and multi-asset investing, by investing across asset classes, has the ability to navigate
and take advantage of macro developments around the world, broader economic developments across
regions, geopolitical developments, fiscal and demographic influences on asset prices,
that are often hard to capture and understand on a bottom-up basis. Adding a multi-asset
manager affords the ability to navigate those macro developments around the world and complement
the bottom-up diversification that already exists in most portfolios.
DISCLOSURE Content is provided for information purposes
only and is not intended as investment advice nor is it a recommendation to buy or sell
any particular security. Any discussion of particular topics is not meant to be comprehensive
and may be subject to change. Any investment or strategy mentioned herein may not be suitable
for every investor. Factual information has been taken from sources we believe to be reliable,
but its accuracy, completeness or interpretation cannot be guaranteed. Past performance is
not indicative of future results. Information and opinions expressed are those of the presenter
and may not reflect the opinions of other investment teams within William Blair & Company,
L.L.C.’s Investment Management division. Information is current as of February 3, 2014
and subject to change without notice. Alternative investments may use investment
techniques and financial instruments that are considered aggressive and typically involve
a high degree of risk. Such techniques may include short sales or other strategies that
are intended to provide inverse exposure to a particular market or other asset class,
as well as leverage and may subject a portfolio to potentially dramatic changes (including
losses) in a portfolio’s value. Alternative investments commonly include the use of derivatives,
or investments where the investor does not own the underlying asset, but instead makes
a bet on the direction of the price movement of the underlying asset. Examples of derivatives
include options, swaps, futures and forward contracts. Derivatives are generally used
as an instrument to hedge risk but also can be used for speculative purposes. There are
various types of risks associated with derivatives such as market risk, liquidity risk, credit
risk, legal risk and operations risk. These investments are intended for sophisticated
investors who are willing to bear the loss of their entire investment and may not be
suitable for all investors. © William Blair & Company, L.L.C