“Alternative investments” are those outside of traditional stocks, bonds, and cash. Investments in such non-traditional assets may allow for attractive returns with low to moderate correlation to movements in stock and bond prices. The Goelzer Non-Traditional Assets Portfolio employs proprietary research to allocate investments across mutual funds and exchange-traded funds that are focused on the following non-traditional asset classes:
- Gold
- Floating Rate Bank Loans
- Emerging Markets Debt
- Real Estate Investment Trusts
- Convertible Bonds
- Commodities
- Long/Short Equity Portfolios
- Arbitrage Strategies
The Goelzer Non-Traditional Assets Portfolio provides certain advantages over hedge funds and commodity partnerships often used for diversification:
- All Investments Are Regulated – By comparison, hedge funds are not required to be regulated by the U.S. Government
- Transparency – Individual holdings are carried and reported to you in the same manner as traditional assets
- Low Cost – Annual fund-level fees and expenses for the portfolio average less than 1%, as compared to standard fees of 2% plus 20% or more of profits for hedge funds Next-Day Liquidity – There are no quarterly redemption limits or extended lock-ups
- No Portfolio Leverage – Risk is reduced by avoiding the use of borrowed funds at the portfolio level
- Tax Reporting – 1099 tax reporting is employed and not K-1 reporting, avoiding delays in client tax return filing