Wealth Outlook 2024 - Slow then grow

45 Wealth Outlook 2024 | Portfolio views Alternative investing in 2024 Allocating to alternatives We believe that alternatives are a key part of a core portfolio for qualified clients for whom the potential asymmetric risks and liquidity constraints are appropriate. That also means alternative investments may be evaluated under the same lens as traditional investments, in an integrated manner, starting with an understanding of one’s objectives, risk tolerance and liquidity requirements. Each investor has his/her/ their own unique investment objectives that will drive individual asset allocation decisions. — The alternative investment universe contains a wide variety of options across the risk/return spectrum to choose from There is no one-size-fits-all answer to the question of how to build an allocation with alternatives. However, the alternative investment universe does contain a wide variety of options across the risk/ return spectrum to choose from. Let us explore how you might evaluate your own situation to build a more diversified portfolio that includes alternatives. Know the objectives Broadly speaking, alternative strategies can be placed into two groups, diversifying and directional strategies. Diversifiers provide some degree of downside protection and can profit from volatile markets but may underperform during bull markets. Directional strategies seek to generate alpha and/or FIGURE 3 Alternatives strategies can be classified as diversifying or directional: DIVERSIFYING Seek to provide downside protection and potentially profit form volatile markets HEDGE FUNDS Relative value, volatility arbitrage, global macro & CTA strategies REAL ASSETS Yield-generating infrastructure and core real estate DIRECTIONAL Seek to generate alpha above traditional credit and equity exposures HEDGE FUNDS Equity long/short, event driven, credit & distressed strategies REAL ASSETS Value-add, opportunistic real estate, co-investments PRIVATE CREDIT Direct lending, mezzanine and special situations & distressed PRIVATE EQUITY Secondaries, buyouts, growth, venture capital, co-investments Diversifying and Directional are internal descriptors based on a fund’s strategy and objective that CGW Alternatives has developed and uses to categorize alternatives funds. Such descriptorshavenot beenapprovedby theportfoliomanagersof any of the underlying fundsmaking up the Portfolio. The internal classification noted above is subject to change without notice Please see Important Information a t the end of this document for the definitions of “Diversifying” and “Directional” funds.