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Alternative Portfolio Strategies: Standing in the Alpha-Beta Parking Lot

Product Type: Market Research Report
Published by: TowerGroup
Published: November 2005
Product Code: R301-834
Description
This TowerGroup Research Note examines some of the most popular alternative portfolio strategies in use today by institutional investors. It also discusses the cutting-edge investment products that are employed in these portfolios and the implications of these strategies for the technology employed by investment managers.
Table of Contents
TowerGroup Take-Aways




Report Coverage




Vision




What's Driving the Adoption of Alternative Portfolio Strategies?

Where's the Alpha?


Exhibit 1: Average US Pension Fund Asset Allocation as of December 31, 2004


Diversifying Risk

Hedging Liabilities and Inflation

The Growth in Alternative Investments




Do Alternative Investments Really Work?


Exhibit 2: The Impact of Adding Alternative Investments to a Traditional Portfolio (1998-05)




Alternative Products and Portfolio Strategies


Exhibit 3: Alternative Investment Products and Portfolio Strategies (2005)


Investment Products

Portfolio Strategies


Exhibit 4: Portable Alpha in Action (2005)




How Prevalent Are Alternative Portfolio Strategies?


Exhibit 5: North American Adoption of Alternative Investment Products and Strategies (2005)




Challenges Abound: Business and IT Implications

Overseeing the Overlays

Derivatives, Derivatives, Derivatives!


Exhibit 6: Derivatives Markets Volume and Operational Backlog in Trade Processing (2003-05)


Reference Data: Garbage In, Garbage Out


Exhibit 7: Alternative Portfolio Strategies: IT Hot Spots (2005)




Summary

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