Our investment perspective
Alternative investments offer advantages to an investor’s portfolio, including diversification, reduced volatility and potential for higher returns. A small percentage of quality managers actually achieve these objectives, and only a few of those managers are available in a fund structure that appeals to the individual investor.
Product structure matters
At XAI, we understand that the fund “wrapper” matters, not just the underlying asset class. Our team has made advances in product design, offering reduced fees and expenses, simplified tax reporting and low investment minimums, all without compromising the portfolio manager’s investment strategy and process.
Additionally, the ART platform™ accommodates commission-based advisors and fee-based advisors serving a large mix of investors. ART represents the next phase in the evolution of how alternative investments are presented to the individual investor community.
A misconception among individual investors is that their portfolio should be 100% liquid. The desire for full liquidity, however, does not align well with long-term investment goals.
Academic research provides evidence that less liquid investments generate additional returns in the form of liquidity premiums for shareholders. The ART structure can house high-quality, previously inaccessible and less liquid investments that enhance the investor experience.
Innovation through access
ART captures the best features of past alternative fund structures and offers access to quality managers. Our platform responds to industry demand for best-in-class management of single-manager, single-strategy alternatives. We believe that advisors and their investors have a preference for institutional alternative strategies and will benefit from a wide array of ART options.
As part of the ART platform™, the XAI Knowledge Bank is a value-added resource for advisors and investors to broaden their understanding of alternatives strategies within a portfolio implementation context.