Alternative investments, which include real estate, commodities and fund of hedge funds among others, allow investors to diversify their portfolio with investments that can be less correlated to the traditional fixed income and equity markets. International Personal Banking provides access to selected alternative investments to experienced and sophisticated clients in this fast-growing and important asset class.

Key Features and Benefits:

Although each alternative investment differs in its risk/return characteristics, adding alternative investments to a traditional long-only stock and bond portfolio may provide the potential for diversification (however, diversification does not ensure against loss) and one or more of the following:

• Access to specialized investment managers.
• Low correlation with public stock and bond markets.
• Lower portfolio volatility.
• Tax efficiency.

Alternative investments are not suitable for all investors and may not achieve all objectives.

Considerations

Although alternative investments have the potential to offer such benefits as higher returns and lower correlation with publicly traded securities, investors should be aware of potential risks associated with these investments:

• Long-term investment horizon.
• Lack of liquidity.
• Limitations on transferability.
• Limited access to performance and investment information.

Each alternative investment involves significant risks which are described in the applicable offering documents. Qualified investors should not invest in any alternative investment unless the investors are able to sustain the loss of all or a significant portion of investment capital. Investors should be aware that they may be required to bear the financial risks of this type of investment for a substantial period of time, since many of these investments are less liquid than other more traditional investment vehicles. In making an investment decision, investors must rely on their own examination of the person or entity creating the securities offered and the terms of the investment including the merits and risks involved. Please consult your Financial Consultant to determine if alternative investment offerings are suitable for you and/or available in your country.

As further described in the offering documents, an investment in alternative investments can be highly illiquid, are speculative and not suitable for all investors. Investing in alternative investments is only intended for experienced and sophisticated investors who are willing to bear the high economic risks associated with such an investment. Investors should carefully review and consider potential risks before investing. Certain of these risks may include:

• loss of all or a substantial portion of the investment due to leveraging, short-selling, or other speculative practices;
• lack of liquidity in that there may be no secondary market for the fund and none is expected to develop;
• volatility of returns;
• restrictions on transferring interests in the Fund;
• potential lack of diversification and resulting higher risk due to concentration of trading authority when a single advisor is utilized;
• absence of information regarding valuations and pricing;
• complex tax structures and delays in tax reporting;
• less regulation and higher fees than mutual funds; and
• advisor risk.

Individual funds will have specific risks related to their investment programs that will vary from fund to fund.

Actual results may vary and past performance is no guarantee of future results.

Diversification does not ensure against loss.

Past performance is no guarantee of future results.

Please see important disclosures about Alternative Investments.

Please click here for important disclosures.