Faced with the prospect of lower returns from the world's equity and fixed income markets, NEPC has been implementing leading-edge investment solutions, including Portable Alpha, which allow investors to add incremental returns to their investments in a wide variety of asset classes. For example, we've identified managers who can overlay the consistent performance of conservative hedge funds onto the returns earned by such indices as the S&P 500 or Lehman Aggregate Bond Index, allowing our clients to earn potentially attractive returns above and beyond what these indices can provide on their own. For investors looking to increase their portfolio returns, portable alpha is an extremely attractive solution.
Part of the beauty of portable alpha is that it can be used in a variety of ways. We can even add "alpha" to a customized benchmark that closely matches an investor's liability or spending needs. There is no limit to the creativity that can be applied. We can help clients implement portable alpha solutions using bundled and unbundled service providers, and add value to virtually any market index. The managers we recommend have excellent risk monitoring and management capabilities, designed to keep the "alpha" (or incremental return) as stable as possible.
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