Why Alternatives Matter More Than Ever
Traditional investment portfolios — historically anchored in equities and bonds — are facing persistent challenges. Prolonged market volatility, inflationary pressures, and compressed yields have prompted financial advisers to diversify beyond conventional asset classes. As advisers look to deliver stronger risk-adjusted performance for their clients, alternative investments are increasingly viewed as an essential component of a modern, resilient portfolio.
Recent industry commentary and research support this shift. For example, the CFA Institute notes a continued rise in allocations towards alternative assets amongst professional investors, driven by diversification and long-term growth objectives. Likewise, the Investment Association has highlighted increased adviser interest in solutions that offer differentiated return profiles and lower correlation to traditional markets.
Allocations to alternatives are steadily growing across the professional investment landscape, with many advisers now recognising the benefits of incorporating strategies such as private credit, real assets, venture capital, structured solutions, and specialist tax-efficient investments (where suitable and appropriate).
The Value of Alternatives in Today’s Market
Professionally curated alternative investments can offer:
- Reduced correlation to public markets
- Enhanced return potential compared with traditional fixed-income exposure
- Diversification that supports portfolio resilience
- Access to specialist market areas historically available only to institutional investors
When considered appropriately within a suitability and regulatory framework, alternatives can support long-term portfolio objectives. Advisers should ensure alignment with the Financial Conduct Authority (FCA) rules on client suitability, product governance, and Consumer Duty.
Useful FCA References:
- FCA Handbook – COBS (Conduct of Business Sourcebook)
- FCA Consumer Duty – ensuring good outcomes for clients
Why Professional Support Matters
Despite their potential benefits, alternative investments often involve more complex structures, liquidity considerations, and risk factors than traditional asset classes. As such, they require thorough due diligence, regulatory understanding, and robust suitability assessments prior to any recommendation.
This is where a specialist distribution partner can add value.
New Capital Link Limited focuses exclusively on B2B distribution of alternative investment solutions. We connect experienced investment managers with regulated financial professionals, providing structured support across due diligence, education, and the distribution process — always with regulatory expectations at the forefront.
We aim to support advisers by offering access to comprehensive product information, due diligence materials, and professional-only insight sessions with investment managers.
Built for Professional Intermediaries Only
New Capital Link Limited works strictly with regulated financial advisers, wealth managers, and other authorised intermediaries. We do not engage with retail investors under any circumstances.
Our objective is to equip financial professionals with the insight, support, and access required to implement sophisticated alternative strategies responsibly and with confidence.
References
- CFA Institute – Industry Research and Insights: https://www.cfainstitute.org/research
- The Investment Association – Industry Insights and Market Data: https://www.theia.org/
- FCA COBS Rulebook: https://www.handbook.fca.org.uk/handbook/COBS/
- FCA Consumer Duty: https://www.fca.org.uk/firms/consumer-duty
