Within alternatives, selection is key. Over the 10-year period from 2012 to 2021, venture capital, private equity and infrastructure lead the way in terms of returns, while hedge funds come in at the bottom – with their performances in the earlier half of the decade brining down the cumulative number. A balanced exposure to alternatives, as illustrated by “Asset Allocation,” would generate an annualized return of 10.5%, below that of VC and PE, but also generate much lower volatility.