PHT can look beyond public markets and traditional investments to find solutions in Real Assets, Private Equity and Alternative Credit.
Alternatives are investments that fall outside of traditional markets, such as stocks and bonds. Because alternatives tend to have low correlations to traditional investments, investors are increasingly turning to them to help boost returns, generate income, provide diversification, and achieve their long-term investment objectives – especially during times of market uncertainty.
Alternatives investments include private assets such as private real estate, infrastructure, private equity, and private credit. They tend to be more complex and less liquid than their traditional counterparts (public stocks and bonds) and provide investors with additional sources of returns. With several decades of management experience, PHT has a long track record of managing investments outside of the traditional markets of stocks, fixed income, or cash.
These alternative strategies are built to seek returns in both up and down markets and tend to be largely uncorrelated with the broader market. And with traditional investments forecasted to underperform the historical average over the next decade, institutional and individual investors are looking to alternatives to meet their return objectives.
PHT Investment Group Alternatives
Today, alternatives include a spectrum of strategies, each designed to support a unique objective and with a different risk-return profile. Below are the alternatives that PHT Investment Group offers:
Real Estate & Infrastructure
Real estate has evolved into a multi-faceted asset class spanning the public and private markets. Investors can choose between public and private real estate investment trusts (REITs), private real estate transactions, and private commercial real estate debt. Institutional and individual investors have historically benefited by investing in privately owned real estate, with benefits ranging from superior income returns, diversification, and strong overall risk-adjusted returns.
Owning private real estate means investing in individual properties or through a pooled investment vehicle available to individual investors but not listed on a stock exchange. Since it is not publicly traded, private real estate is not subject to the stock market volatility responsible for much of the fluctuation in share prices of publicly owned real estate. In addition, private real estate investments usually do not provide liquidity in the same manner as public real estate, leading investors to expect higher returns or what’s also known as an “illiquidity premium”. Lastly, real estate not only has a low correlation with equities but is often viewed as a hedge against inflation.
Infrastructure assets lay the foundation for essential goods and services, comprising the energy, power, transport, water and utilities sectors. Portfolio allocations to infrastructure have grown significantly in recent years, and this trend is expected to accelerate in the coming years as the benefits of investing in infrastructure assets are increasingly recognized. There is a significant need for new infrastructure in both developed and developing economies, and the need for private capital to replace aging infrastructure or fund new projects will continue to persist. This asset class offers long-term, stable and predictable cash flows in mission critical industries.
Private equity investments (typically accessed through a limited partnership) take an ownership position in companies or securities not listed on a public stock exchange. The goal is to add value by providing capital to help new businesses grow, implementing turnaround strategies, and by restructuring existing businesses with operational inefficiencies that offer the potential to generate outsized long-term gains.
The Key Characteristics of
Higher return potential than traditional investments
Uncorrelation to the stock market and increased portfolio diversification
Longer lock-up of periods and reduced liquidity
Often complex investment structures and risk-return profiles
Higher return potential than traditional investments Uncorrelation to the stock market and increased portfolio diversification Strong income Longer lock-up of periods and reduced liquidity Often complex investment structures and risk-return profiles Traditionally available to institutional and accredited investors, along with higher minimum investment requirements
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