Alternative investments by their nature involve a substantial degree of risk, including the risk of total loss of an investor’s capital. Further, alternative investments are subject to less regulation than other types of pooled investment vehicles, may be illiquid, and cannot assume that investments in the asset classes identified will be profitable or that decisions we make in the future will be profitable. Alternative investments may also involve significant use of leverage, making them substantially riskier than other investments.
Alternative investing involves substantial risk and there is an opportunity for significant losses. The products may not be suitable for all investors. Compared with a traditional mutual fund, an alternative fund typically holds more nontraditional investments and employs more complex trading strategies. Investors considering alternative mutual funds should be aware of their unique characteristics and risks. Alternative investments may also have limited performance information, low liquidity, and unproven strategies with unknown risks.
Diversification does not guarantee a profit or eliminate the risk of a loss.
U.S. large-cap equities are measured by the S&P 500 Index, which tracks the performance of 500 of the largest publicly traded companies in the United States. U.S. investment-grade bonds are represented by the Bloomberg U.S. Aggregate Bond Index, which tracks the performance of U.S. investment-grade bonds in government, asset-backed, and corporate debt markets. Market neutral is represented by the Credit Suisse Equity Market Neutral Hedge Fund Index, which tracks the aggregate performance of equity market neutral funds. Multistrategy is represented by the Credit Suisse Multi-Strategy Hedge Fund Index, which tracks the aggregate performance of multistrategy funds. Managed futures are represented by the Credit Suisse Managed Futures Hedge Fund Index, which tracks managed futures hedge funds. Global macro is represented by the Credit Suisse Global Macro Hedge Fund Index, which tracks global macro hedge funds, which may hold positions in practically any market with any instrument. Long/short equity is represented by the Credit Suisse Long/Short Equity Index, a subset of the Credit Suisse Hedge Fund Index, which tracks the aggregate performance of dedicated short bias funds. Global infrastructure is represented by the MSCI World Infrastructure Index, which tracks the global opportunity set of companies that are owners or operators of infrastructure assets. Commodities are represented by the S&P GSCI Total Return Index, which tracks general commodity price movements and inflation in the world economy. It is not possible to invest directly in an index. Past performance does not guarantee future results. Multistrategy is represented by Credit Suisse Multi-Strategy Hedge Fund Index, which tracks the aggregate performance of multistrategy funds. Real estate is represented by the iShares U.S. Real Estate ETF, which seeks to track the investment results of an index composed of U.S. equities in the real estate sector. It is not possible to invest directly in an index.
This material is for informational purposes only and is not intended to be, nor shall it be interpreted or construed as, a recommendation or providing advice, impartial or otherwise. John Hancock Investment Management and our representatives and affiliates may receive compensation derived from the sale of and/or from any investment made in our products and services.
The views presented are those of the author(s) and are subject to change. No forecasts are guaranteed. This commentary is provided for informational purposes only and is not an endorsement of any security, mutual fund, sector, or index. Past performance does not guarantee future results.
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