8/18/2026 1:29 AM (PST)

Alternative investment funds are investment vehicles that provide exposure to assets or strategies outside traditional investments such as publicly traded stocks and bonds. Depending on the structure, they may invest in private equity, private credit, real estate, hedge fund strategies, or other alternative assets. One important consideration is that alternative investments can have very different risk, liquidity, fee, and return characteristics. Investors should understand the underlying assets and the structure of the investment rather than assuming every alternative investment behaves similarly. Life settlements are one example of an alternative asset class. Instead of depending primarily on corporate earnings, interest rates, or market sentiment, life settlement returns are primarily connected to actuarial assumptions surrounding the insured individual's lifespan. Some investors consider this type of exposure as a potential diversification tool because its return drivers differ from those of traditional financial markets. Before investing in alternative investment funds or other alternative structures, investors should review the offering documents, fees, liquidity provisions, risks, and eligibility requirements.