Are Alternative Investments Suitable Assets for Long-term Insurance Liabilities and Pension Funds?

In a low-interest rate world, alternative investments may provide some relief – and unexpected benefits too.

In today's financial markets characterized by very low interest rates, higher-than-expected risks, and high volatility in equity prices, investing for the long term is a challenging proposition. Decent returns, even at the unexciting level of one two percentage points above inflation, may be difficult to achieve without bearing substantial risk.