The strategy is Oppenheimer’s response to investors and advisers who have been grappling with a market environment with unconventional fixed-income challenges. Many have heard of alternatives but do not know the right allocation or how this asset class will complement a traditional balanced portfolio.
In the context of investments in a standard 401(k) plan, the fund addresses three key points: “Intelligent diversification; inflation; and maximizing savings as an incentive to help people save more,” which are crucial for the defined contribution investor, Kamal Bhatia, OppenheimerFunds’ product director of fixed income and alternatives, told PLANSPONSOR.
While 401(k) plans are weighted toward equities, Bhatia said he looks at other income sources—gold mining stocks, real estate, currencies and commodities—to maximize growth, while considering the investing time frame and inflation. The fund also invests in energy MLP’s, stocks, commodities and global multi-strategy exposures.
The portfolio manager seeks to create a well-diversified core alternative portfolio by allocating assets across a wide range of alternative asset classes and strategies. The fund seeks to provide a more attractive balance between growth, income and diversification than any single strategy can provide on its own.
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