Alternatives: The asset class that makes or breaks portfolios

There are only three things you can count on in this world, death, taxes and the fact that if a wholesale client asks you how you’re adding value, you had better not say, “we overweighted Aussie equities.”

Equities, covered. Beta does the job neatly. Want to get fancy? Throw in some tilts. But we all know the secret sauce of portfolio outperformance isn’t found in the S&P/ASX 200. Fixed income is essential for liquidity and capital stability, especially in a world where volatility seems to be one of the few consistent trends. But let’s be honest, no-one is writing home about their core bond allocation.

Which brings us to alternatives. The one bucket that still allows advisers to truly earn their fee. The hardest to get right; the easiest to get wrong. And the most powerful when implemented well.

Why alternatives matter

In a market like Australia, so concentrated, so yield-focused, so index-heavy, the best portfolios have something different going on. Alternatives are that something. This is where you get access to strategies that don’t rely on market beta: private credit, real assets, macro, event-driven, long/short, absolute-return.

They can protect capital. They can generate differentiated returns. They’re often uncorrelated to traditional assets. But more importantly, this is the space where active decisions still matter. Where research pays off. Where your choice of manager can be the difference between outperformance and a portfolio that gets quietly smoked over five years.

There is massive dispersion in alternatives. The spread between top- and bottom-quartile managers is not a rounding error, it’s the gap between a fund that works and one that makes your clients question your judgement.

A job for professionals

That’s why using alternatives properly isn’t a side hustle. It takes frameworks, process, due diligence, real conversations with asset consultants, research houses, and fund managers, not just reading a tear-sheet. It’s harder, but it’s worth it. This is the area where advisers step up from allocator to strategist.

And for wholesale clients, this is often the only place they haven’t done all the thinking themselves. They know equities; they know property; but alternatives, that’s where they lean on you.

Why we’re running this event

That’s exactly why I’m hosting a two-day event next month dedicated to the art and science of alternatives. This isn’t a sales fest or a parade of pitch decks. It’s about helping advisers build the frameworks they need to use alts well. Deep-dives into strategies, honest discussions with peers, challenging the way we build portfolios, and maybe each other, too.

Because here’s the truth, a factsheet will never teach you what a room full of smart advisers can. Events are where knowledge becomes real. Where you hear what questions others are asking. Where you stop being a product selector and become a portfolio architect.

We’ll be digging into:

• How to integrate alternatives into portfolio construction
• What role they should play in different market conditions
• What to ask fund managers and consultants before you allocate a dollar
• And what’s working in portfolios right now

If you’re serious about making a difference to client outcomes, and you believe, like I do, that alternatives are the make-or-break bucket, then join us. We’ll challenge assumptions, debate ideas, and learn from each other.

It’ll be our best event yet.

👉 Register for the 2025 Alternatives Symposium, Blue Mountains NSW

Jamie Nemtsas

Jamie Nemtsas is founder of advice firm Wattle Partners and the executive chair of The Inside Network.