First of all, it is important to mention that alternative assets correspond to the class of financial and/or real assets other than traditional assets (stocks and bonds). Alternative assets include investments in real estate, infrastructure, private debt and private equity. Traditional assets are characterized by volatile returns, high liquidity and a highly explored market. On the other hand, alternatives are characterized by being a developing market, with a higher potential return, low correlation with the markets and a lower degree of liquidity.

BlackRock, one of the world's largest alternative asset managers, points out that investing in these types of assets, which tend to behave differently from conventional investments, can provide the following benefits:

• Increased diversification: Having a low correlation to traditional asset classes, alternatives are an excellent way to diversify portfolios and reduce volatility.
• Increased returns: They can improve the return/risk profile and total return of a portfolio through access to a broader set of investments and strategies.

• Finding Income: They can offer consistently higher returns than traditional investments, especially during volatile periods.

The above described, becomes especially interesting in the turbulent times in which we live, which have been dragging on since the social crisis of October 2019 and which were subsequently worsened by the pandemic during 2020. The volatility presented in Chile's stock indexes in the aforementioned periods and how it is expected to continue given the results of last Sunday's elections (the IPSA fell 9.33% on Monday), represents a risk to investors' wealth and that is where alternative assets appear as a resilient opportunity, with low correlation to these shocks and offering high diversification to their portfolios.

In a study conducted by Preqin, one of the most important alternative asset platforms, where more than 500 institutional investors of different sizes, type of managers and location were surveyed, the results showed that the performance of the different types of alternative assets met or exceeded expectations during 2020, showing strong resilience and adaptability in the difficult times caused by the pandemic. Figure 1 shows that the main reasons focus on the diversification and reliable returns delivered by the different asset classes.

In view of the above, we believe that despite the difficult times we have faced and which are expected to continue for some time, a good opportunity to invest diversified, with low correlation, lower risk and reliable returns is to invest in alternative assets, always taking into consideration the experience of the manager and making a good selection of investment funds. In FYNSA AGF we have options to invest in Private Debt, Infrastructure and Real Estate assets. We invite you to review our proposals and, if you have any questions, please contact us to provide you with more in-depth information.

Graph 1: