UniFi by CAIA Crossing the Threshold - 30

For example, imagine a private, value-add multi-family real estate fund manager that
acquires Class B/C multi-family properties in secondary cities and sustainably renovates
them (through the reuse of materials, energy, and water efficiency enhancements, etc.)
while keeping rents affordable for median households living in the community. At select
properties, several units are master leased to provide stable housing for non-profit
organizations working with the unhoused. This hypothetical strategy achieves the following
objectives:
* Diversification - return is primarily driven by housing supply-demand imbalances, not
by changes in stock and bond markets.
* Stable rental income driven by high occupancy of properties
* Capital appreciation through increased property value from renovation and rent growth
* Positive environmental impact through sustainable renovations
* Positive social impact through the preservation of workforce housing and providing
stable housing to the unhoused
* Inflation protection through rent growth
Of course, not all alternative investments have characteristics that achieve so many goals in
one. To help you align investor goals with the most suitable alternative investments - many
of which can address multiple goals, laying out possible asset classes within a framework
such as the one illustrated below can be helpful in portfolio construction as well as investor
communication. Positioning alternative asset classes in a framework that is familiar to
investors helps them understand both the unique risk and return characteristics of each
alternative and the purpose alternatives serve in achieving their financial goals.
Next are some portfolio examples integrating alternatives using a goals-based framework:
Goals: Income and Moderate Growth, High Net Worth Investor
30 A BETTER WAY FORWARD
UniFi by CAIA Crossing the Threshold

Table of Contents for the Digital Edition of UniFi by CAIA Crossing the Threshold
