Alternatives

In asset allocation when we talk about alternatives this usually refers to asset classes that do not fall under cash, bonds or equities. Property and commodities will fall under alternatives as well as other asset classes such as private equity, hedge funds and structured products.

Sometimes there can be some confusion around property. In the case where property companies are listed on a Stock Exchange, these could be classified as equities rather than property, however the underlying asset is actually property. In Botswana companies such as Turnstar Holdings and New African Properties (NAP) only invest in properties, however we can purchase stocks or shares in these companies on the BSE.