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Playlists – Alternative Opportunities

& Alternative Income Opportunities

Only on Gather

Featuring a dynamic selection of funds managed by

New ways to make money and build resilience in your portfolio

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Alternative Investments can add diversification and resilience to a traditional portfolio. As a community of passionate investors, we offer a wide suite of investment styles and asset classes, in order to find unique ways to make money and build resilience in your portfolio.

Why do we think alternative investments are so important? Because, at Gather, we are continuously looking for innovative ways to help you build performing investment portfolios. One way to do this is to expand our universe by offering diversified asset classes and styles. Alternatives can behave in uncorrelated ways to traditional global equity markets, and, as a result, can provide additional diversification.

Our Alternative Opportunities Playlist comprises both Alternative assets and Alternative strategies:

  • Alternative assets include real estate, infrastructure and private equity. Unlike traditional assets – stocks and bonds – these investments are not typically traded on public markets.
  • Alternative investment strategies may invest in traditional stocks and bonds, but they use non-traditional strategies, such as those used by hedge funds.

One advantage of alternatives is that they can prove more resilient during periods of turbulence in the global equity and bond markets as they can provide a cushion and different sources of performance.

Both our Alternative Playlists feature a dynamic selection of funds managed by BlackRock that can contain complex investment products.

These Playlists have been designed so you can also make the most of your tax allowances by investing in these playlists using our Gather ISA and Junior ISA accounts (coming soon).

Playlist
Funds3
Overall Risk4
ESG5
Board Independence6
Board Diversity7
Carbon Intensity8
Alternative Opportunities1
8
4.8 / 7
7.4/ 10
80%
 31%
 675.5
Alternative Income Opportunities2
8
4.8 / 7
7.3 / 10
79%
31%
549.1

Figures subject to change. They are calculated using the data provided by our fund providers and other third party data providers, utilising the allocations provided by the fund provider, to create blended scores for each Investment Playlist. (Data last updated 19th August 2022)

You can invest as much as you want in these cutting-edge playlists starting from £30 per month with no upper limit.

Visit our app and discover how many of your friends, Gather Experts and Inspiring Investors already invest in our Alternative Playlists. Explore why they invest in these playlists and what overall percentage of their portfolio they allocate to them.

A hypothetical example of how our Alternative Playlists have performed in the recent past.

Playlist
1 Jan 2021 – 31 Dec 2021
1 Jan 2020 – 31 Dec 2021
1 Jan 2019 – 31 Dec 2021
1 Jan 2018 – 31 Dec 2021
1 Jan 2017 – 31 Dec 2021
Alternative Opportunities
+2.6%
+9.5%
+20.2%
 +15.6%
 +24.0%
Alternative Income Opportunities
+4.4%
+10.0%
 +21.5%
 +16.6%
 +24.3%

Our Investment Playlists feature a dynamic selection of funds managed by BlackRock

IMPORTANT

These simulated performance returns are gross returns and do not include all costs and dividends received. Where the components of the portfolio have a shortened performance history, we have not used it to simulate performance so past and future performance may not include all components of the portfolio. This information does not constitute financial advice, the decision to invest is your choice.

Modelled past performance is not a reliable indicator of future performance. We have back tested the hypothetical past performance of the investment playlist and investment album portfolios for illustration purposes only.

Gather’s Alternative Opportunities Investment Playlists are a dynamic collection of funds managed by BlackRock. BlackRock does not provide any service or product to investors.

Capital at Risk.

So, what exactly are Alternatives?

Our two Alternative Opportunities Playlists offer the opportunity to benefit from a more sophisticated approach to managing their investment. To achieve this, each Playlist has investments in 5 types of assets and strategies:

Liquid alternatives (aka hedge fund style strategies)

These are non-traditional strategies for investing in traditional assets. Rather than just investing in directional equities and bonds that are only likely to make positive returns when markets go up, BlackRock’s liquid alternatives managers aim to exploit inefficiencies in markets to make returns. For example, an opportunity may be event driven – stocks are often mispriced following a corporate event, usually a restructuring, merger or takeover. Event driven strategies aim to take advantage of this mispricing in order to make an opportunistic profit. Another example is relative value strategies – these try to exploit temporary differences in the prices of related stocks i.e. investing in the relative performance of the best company versus the worst in the same industry, generating returns only on the differential between them. These strategies require a lot of research, insights, experience and skills – also known as Alpha.

Real Assets

Real Assets are investments in infrastructure and real estate and can be made through REITs (Real Estate Investment Trust(s)) listed on major stock exchanges. The REIT owns or finances income-producing real estate assets, often across a range of property sectors including public sector infrastructure such as toll roads, ports and airports. Because BlackRock invest through REITs, these investments are typically liquid – which means they tend to be easier to sell and value than illiquid Real Assets.

Listed Private Equity

Private equity usually involves investing in the equity and debt of private companies that aren’t typically traded on public exchanges. Our Alternative Playlists take a different tack and only invest in Listed Private Equity available only through listed investment trusts (like REIT for real assets). In this way, we give investors access to a new universe of Private Companies without the considerable risk of the investment potentially being illiquid.

Commodities

These are the raw materials used in the production of other goods and services – for example, energy, precious metals, industrial metals and agricultural products. The commodity markets often behave differently to traditional equity markets so their inclusion in an investor’s portfolio helps promote diversification, inflation protection and overall resilience. Our Alternative Playlists gives investors exposure to a diversified universe of commodity tracker funds.

Credit

Private credit is privately issued debt, often to corporates, which may offer diversification and a higher yield compared to publicly traded debt. Our Alternative Playlists gives investors exposure to credit investments without the risk of illiquidity.

From launch, we will be offering two Alternative Opportunities Playlists

Alternative Opportunities

Our Alternative Opportunities Playlist, featuring funds managed by BlackRock, places a greater focus on Liquid Alternative strategies to provide new forms of returns uncorrelated with the directionality of global equity markets. It has less exposure to stable alternative income generating investments.

Currently this Playlist invests in 8 themes giving exposure and diversification to thousands of holdings, with an ESG score of 6.9 (out of 10)5.

Sector Allocation

Equity Absolute Return 20%

40%

Event Driven Fund 20%

40%

Fixed Income Fund 20%

40%

Systematic Multi Strategy ESG 20%

40%

Developed Real Estate Markets 5%

10%

Global Commodities 5%

10%

Global Infrastructure 5%

10%

Listed Private Equity 5%

10%
KIIDs & More Details
Alternative Income Opportunities

This Alternative Income Opportunities Playlist, featuring funds managed by BlackRock, places a greater focus on the income generating alternative assets to provide new forms of stable returns not correlated with bond markets. It has less exposure to the uncorrelated liquid alternative strategies.

Currently this Playlist invests in 8 themes giving exposure and diversification to thousands of holdings, with an ESG score of 7.2 (out of 10)5.

Sector Allocation

Fixed Income Fund 26%

52%

Systematic Multi Strategy ESG 19%

38%

Equity Absolute Return 18%

36%

Event Driven Fund 12%

24%

Global Commodities 8.5%

17%

Global Infrastructure 7%

14%

Listed Private Equity 5%

10%

Developed Real Estate Markets 4.5%

9%
KIIDs & More Details

We offer a wide range of unique opportunities and have some really exciting new investments in development.

Read about our other Playlists.

1 – 9.9% of the current composition of the Alternative Opportunities Investment Playlist has measurable securities for the purposes of calculating ESG, Board Independence, Board Diversity and Carbon Intensity scores

2 – 11.4% of the current composition of the Alternative Income Opportunities Investment Playlist has measurable securities for the purposes of calculating ESG, Board Independence, Board Diversity and Carbon Intensity scores

3 – Our number of funds are selected in relation the overall theme of the Playlist and its underlying holdings. Further educational information on Exchange Traded Funds (ETF’s) are available on Investopedia

4 -Our risk scores are taken from the Key Investor Information Documents provided by BlackRock. Risk is measured on a scale of 1-7, with 1 being the lowest and 7 the highest. Each fund’s score is combined with the allocation it has in a given Playlist, to produce a weighted-average risk score. Scores are calculated incorporating simulated historical data and may not be a reliable indication of the future risk profile of the Share Class. The risk score shown is not guaranteed and may change over time. The lowest category does not mean risk free. Further educational information on risk is available from Investopedia

5 -The Environmental, Social & Governance (ESG) scores for these Playlists are calculated using the scores shown by BlackRock. These scores are calculated by MSCI – a global provider of equity, fixed income, real estate indexes, multi-asset portfolio analysis tools, ESG and climate products. Each fund’s score is combined with the allocation it has in a given Playlist, to produce a weighted-average ESG score. Further educational information on ESG is available from Investopedia

6 – Board Independence is a corporate governance score which looks at the percentage of issuers of a fund that have an independent board of directors. This is calculated by MSCI – a global provider of analysis tools. Each fund’s score is combined with the allocation it has in a given Playlist, to produce a weighted-average Board Independence score. Further educational information on Board Independence is available from Investopedia

7 – Board Diversity is a corporate governance score which looks at the percentage of women on the board of directors of issuers of a fund. This is calculated by MSCI – a global provider of analysis tools. Each fund’s score is combined with the allocation it has in a given Playlist, to produce a weighted-average Board Diversity score. Further educational information on Board Independence is available from Investopedia

8 – The MSCI Weighted Average Carbon Intensity measures a fund’s exposure to carbon intensive companies. This figure represents the estimated greenhouse gas emissions per $1 million in sales across the fund’s holdings. This allows for comparisons between funds of different sizes. Further details of MSCI’s methodology can be found here.

Complex Product Risks
These Investment Playlists features Complex Products and as such, the underlying investments of these Investment Playlists contain additional risks than traditional investments.Capital at risk. The value of Investment Playlists with complex products can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.In respect of the complex products mentioned, this communication is intended for information purposes only and does not constitute investment advice or a solicitation of an offer to invest.Gather has not considered the suitability of this investment against your individual needs and risk tolerance. The data displayed provides a summary for information purposes only. You should seek independent investment advice prior to taking any investment decision and should always be part of a diversified portfolio.Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting these Investment Playlists.Please read carefully all the additional risks within these Investment Playlists as their portfolios contains complex products:

Concentration Risk
Investment risk is concentrated in specific sectors, countries, currencies, or companies. This means the portfolio is more sensitive to any localised economic, market, political or regulatory events.
Counterparty Risk
The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Share Class to financial loss.
Derivatives Risk
Derivatives are highly sensitive to changes in the value of the asset on which they are based and can increase the size of losses and gains, resulting in greater fluctuations in the value of the portfolio. The impact to the portfolio can be greater where derivatives are used in an extensive or complex way.Commodity Swaps RiskThe prices of commodities tend to experience greater variations than other asset classes (e.g. equities or fixed income securities). Investments in commodities are therefore potentially riskier than other types of investments.
Equity Risk
The value of equities and equity-related securities can be affected by daily stock market movements. Other influential factors include political, economic news, company earnings and significant corporate events.Investments in Infrastructure Securities RiskInvestments in infrastructure securities are subject to environmental concerns, taxes, government regulation, price, supply, and competition.
Private Equity Securities Risk
Private equity securities can be affected by daily stock market movements, political and economic news, company earnings and significant corporate events. Private equity companies may involve additional risks including higher levels of borrowing, unclear distribution of risk and losses within the private equity structure and constraints on buying and selling underlying investments quickly.
Absolute Return Risk
Due to its investment strategy an ‘Absolute Return’ portfolio may not move in line with market trends or fully benefit from a positive market environment.Asset Backed Securities I Mortgage-Backed SecuritiesAsset backed securities and mortgage-backed securities are subject to the same risks described for fixed income securities. These instruments may be subject to ‘liquidity risk’, have high levels of borrowing and may not fully reflect the value of underlying assets.
Credit Risk
A main risk related to fixed income investing is credit risk. Credit risk refers to the possibility that the issuer of the bond will not be able to repay the principal and make interest payments.
Investment in Property Securities Risk
Investments in property securities can be affected by the general performance of stock markets and the property sector. In particular, changing interest rates can affect the value of properties in which a property company invests.Liquidity RiskThe portfolio’s investments may have low liquidity which often causes the value of these investments to be less predictable. In extreme cases, the portfolio may not be able to realise the investment at the latest market price or at a price considered fair.
Non-Investment Grade Risk
Non-investment grade fixed income securities are more sensitive to changes in interest rates and present greater ‘Credit Risk’ than higher rated fixed income securities.The information contained in this Investment Playlist is derived from internal and/ or third-party data considered by Gather to be reliable, but it is not necessarily all inclusive, its accuracy and completeness is not guaranteed, and it may be subject to change. Reliance upon information in this communication is at your sole discretion.
You should seek independent investment, legal and tax advice prior to taking any investment decision.