Selected Alternatives Fund
Status on the Selected Alternatives fund's first five years
With the turn of the year from 2023 to 2024, the Selected Alternatives fund has something to celebrate. The fund was established in 2019, and the turn of the year means that the fund has had five full years of operation. Therefore we want to take the opportunity to look back on how the first five years have gone and at the same time look at where the fund is heading.
The fund contributes to diversification
Since the launch of the Selected Alternatives fund, its purpose has been to provide investors with access to alternative investments of institutional quality. The fund's goal is both to deliver an attractive return and, just as importantly, to contribute positively to minimizing return fluctuations on a diversified portfolio.
At the beginning of 2024, the fund has now had five full years of operation, and we can conclude that the fund's mission has succeeded.
The Selected Alternatives fund's return has been between 6-8% annually after costs for all five years of operation. This is a result we are proud of. Not only is the return within the framework of our original objective for the fund, but it is also an indication of the fund's stable operation and the favourable investment choices that have been made for the benefit of our investors.
The Selected Alternatives fund has delivered a total return of 39.6% over the life of the fund, corresponding to an annual return of 7%. In addition to the excellent return, the fund has shown both low standard deviation and low covariance to listed stocks in particular. This emphasizes the fund's ability to offer investors an alternative and potentially more stable investment option.
Looking back at 2023
2023 was a difficult year for alternative investments in many ways. From a broad perspective, rising interest rates have led to a decrease in real-asset prices as financing has become more expensive. From Selected Alternative's perspective, this is primarily reflected in decreasing prices for the fund's properties in operation.
Here, the fund's conservative approach to financing properties with long-term fixed interest rates, combined with rising rent levels and positive operating returns, has mitigated the net impact on equity.
The fund's infrastructure investments have been less exposed to decrease in prices. In addition to being exposed to different asset classes, the Selected Alternatives fund is exposed to assets in both development and operations. The fund's development assets have contributed very positively to the total return in 2023.
The past year has thus once again illustrated the importance of diversification, which confirms the investment philosophy and strengthens the belief in the long-term potential.
Future perspective
With the support of both existing and future investors, work is underway to add new assets to the portfolio in 2024. The fund has an attractive pipeline of investments - including both well-known assets such as property, as well as new investment types.
At the same time, we continue to work diligently on the best possible development and operation of the fund's existing investments, thereby maximizing the value.
Curious to learn more about the fund?
If you want to learn more about the Selected Alternatives fund and how you can invest yourself, you can read more via the link here or fill out the form below.
