At FCMB Asset Management Limited, we offer Alternative Asset solutions in addition to Traditional Assets. Alternative Assets are suitable for Qualified Institutional Investors (QIIs) and High Net Worth Individuals (HNIs) seeking competitive risk-adjusted returns and portfolio diversification, and who are sophisticated enough to understand the risk profiles of Asset classes under Alternative Assets.

Alternative Assets are financial assets that fall outside Traditional Assets. Traditional Asset classes include Money Market Instruments, Bonds/Fixed Income and Equities. On the other hand, Alternative Assets include Venture Capital, Private Equity, Private Credit/Debt, Infrastructure, Real Estate, Hedge Funds, and Commodities. The Asset classes under Alternative Assets have gained acceptance in recent years as investors seek to enhance long-term performance while balancing portfolio risk.

Key characteristics of Alternative Assets

• Alternative Assets have the potential to produce high absolute and risk-adjusted return on investments.
• These investments usually have high minimum entry requirements.
• Alternative Assets are largely illiquid assets with prescribed lock-up periods and most times not traded on the public market.
• They tend to have a low correlation with Traditional Assets such as Equities and Fixed Income. Thus, they are less sensitive to market movements.

Key benefits of Alternative Assets

• Alternative Assets offer investors the opportunity to earn high absolute and risk-adjusted returns.
• Incorporating Alternative Asset classes into investment portfolios helps to reduce volatility and overall portfolio risk.
• Investing in Alternative Assets can serve as a hedge against inflation.
• Alternative Assets serve as a source of sustainable capital for driving economic growth and development.

For enquiries, please send us an email at fcmbamaa@fcmb.com or fcmbamenquiries@fcmb.com