First of all, it is important to mention that alternative assets correspond to the class of financial and/or real assets other than traditional ones (stocks and bonds). Alternatives 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. In contrast, alternative assets are characterized by a developing market, with potentially higher returns, low correlation with markets, and a lower degree of liquidity.

BlackRock, one of the world's largest alternative asset managers, highlights that investing in this type of asset, which tends to behave differently from conventional investments, can provide the following benefits:

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

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

The above is particularly interesting in the turbulent times we are living in, which have been dragging on since the social crisis of October 2019 and were subsequently worsened by the pandemic during 2020. The volatility seen in Chile's stock market indices during 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' assets. This 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, which surveyed more than 500 institutional investors of different sizes, types of managers, and locations, the results showed that the performance of different types of alternative assets met or exceeded expectations during 2020, demonstrating strong resilience and adaptability in the difficult times caused by the pandemic. Figure 1 shows that the main reasons for this are the diversification and reliable returns delivered by the different types of assets.

Based on the above, we believe that despite the difficult times we have faced and are expected to continue facing for some time, a good opportunity for diversified investing, with low correlation, lower risk, and reliable returns is to invest in alternative assets, always taking into account the manager's experience and making a good selection of investment funds. At FYNSA AGF, we offer options for investing in private debt, infrastructure, and real estate assets. We invite you to review our proposals and, if you have any questions, please contact us for more detailed information.

Figure 1: