FidelityConnects

Liquid alternatives: Emergence of a third asset class? - Andrew Clee and Rory Poole

November 17, 2020

For the last 40 years, investors have generally had to make two portfolio decisions: equities or bonds, and what’s the appropriate mix? In a world of ultra-low interest rates and heightened uncertainty, Andrew Clee and Rory Poole discuss the emergence of liquid alternatives as a third asset class, including why now, how they work and how they fit in an overall portfolio. Alternatives strategist Rory Poole notes that alternatives offer investors an opportunity to benefit from strategies other than traditional long-only investment products, and that Fidelity is well equipped to be in the alternatives space, due to the quality of research that has made Fidelity’s existing lineup so successful over time. Vice President of ETFs Andrew Clee adds that in the current low-interest-rate environment, it can be harder to meet return objectives and stay within risk objectives without increasing equity exposure; alternatives can allow for diversification and returns from different streams.

Recorded on November 13, 2020.