Alternative Investments

Manager, Manager, Manager

Alternative assets are excellent diversifiers and can offer premium returns over traditional equities and fixed income markets. Yet, it is important to note that while asset allocation is a primary determinant of investment returns over time, it is less important in alternative investments than other asset classes. Instead, strategy and manager selection drive returns in alternative investments.

As investors move to less liquid asset classes, access to high-performing managers is the key to investment out-performance. Research shows there is a vast difference in returns from top-quartile to bottom-quartile managers in alternative asset classes versus equity markets. Clearly, manager selection makes the difference.

Atlantic Trust's Multi-Manager Investment Committee has a proven record of selecting quality alternative managers in hedge funds, private equity and real estate. As we see increasing interest from our clients in alternative investments, we continue to invest in our team and expand our alternatives platform.

Alternatives: Manager Selection Makes the Difference

* 1990-2006 returns for all public market securities; 1990-2006 vintage years for LBO and VC. Sources: Morningstar & Venture Economics, June 2007

Source: Lehman Brothers, MSCI, S&P, TASS and Bernstein via Reuters Knowledge. "What Lies Beneath: Navigating the Hedge-Fund Market". Aug. 2006 Time Period 1996 to 2005.