Investment - Articles - The role of Alternative Risk Premia in investment return


Aonhas issued ‘Alternative Premia, Alternative Price: an introduction to Alternative Risk Premia’. This new paper examines the role of Alternative Risk Premia (ARP) in pension scheme portfolios as investors seek increased diversification from non-traditional sources of return.

 Matthew Towsey, principal at Aon, said: “An allocation to ARP is especially appealing both for investors who are without an allocation to hedge funds but who wish to achieve some similar exposures in a systematic manner, and to investors who have been disappointed by other absolute return strategies, some of which have struggled to generate meaningful returns.

 “We have seen a clear desire for ARP strategies in recent years as schemes have recognised that they can aid diversification within a portfolio while allowing investors to access returns that display little correlation to traditional equities and bonds. In this paper we give an introduction to ARP and set out why many other schemes may soon be considering this approach too.”

 Alternative Premia, Alternative Price: an introduction to Alternative Risk Premia

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