Overview

Expected returns on multi-asset portfolios may be improved materially with the implementation of a portable alpha overlay. Unlike other alternative allocations, portable alpha overlays can be implemented without changing underlying portfolio allocations and/or existing active managers.

• A portable alpha overlay can provide an uncorrelated and unfunded separate source of excess returns generated by alpha management.
  
• A well-designed portable alpha overlay strategy with a low correlation to traditional asset class and private market exposures can provide diversifying, additive returns when asset owners need them most.
  
• Our case study shows that when an overlay targeting 2% risk is introduced, it can add roughly 1% alpha to a well-diversified portfolio^*.
  

^*Results not guaranteed