Alternative investing
Jul 20, 2026
INFRASTRUCTURE AS AN INFLATION HEDGE
The 3 jobs of cash: Is yours purposeful—or parked?
Spend, protect and invest: Put parked cash to work—align specific pools of cash to specific goals so the rest of your portfolio can stay invested with confidence.
SPEND
Cash for near-term needs
Operating cash flow + planned outlays
This is the money that supports day-to-day life and known expenses coming due—helping you avoid selling longer-term investments at the wrong time. Think: ongoing lifestyle needs, recurring commitments, taxes, and planned large expenditures like a home down payment, renovation, tuition, or a near-term capital call.
If you have consistent income, this bucket may be smaller because cash flow replenishes it. If you have a cash-flow deficit (e.g., you’re drawing from the portfolio), this bucket becomes more important—and may need a longer runway.
What to do about it?
Keep it reliably accessible and aligned to timing (e.g., true cash, cash equivalents, or other highly liquid solutions). The job here is access and flexibility, not maximizing return.
PROTECT
Cash for psychological safety
Your "sleep-well-at-night" buffer
This bucket is about confidence and resilience. It’s the liquidity that helps you stay disciplined through volatility, business uncertainty, or unexpected life events—so you’re less likely to make reactive decisions elsewhere in the portfolio.
Importantly, “emergency” isn’t always a surprise expense. Many families also want a buffer for uncertain timing (a bigger-than-expected tax bill, an unplanned but likely home expense) and the simple comfort of knowing cash is there.
What to do about it?
Build a psychological safety net that fits your household and your plan—and think in terms of access to liquidity, not just a bank balance (cash, cash equivalents, and potentially other sources of liquidity like securities-backed lending, depending on your comfort level and setup).
INVEST
Cash not aligned to near-term1 goals
Excess cash above and beyond all liquidity goals
Once you’ve set aside liquidity for day-to-day needs, planned near-term outlays, and your psychological safety net, you may still have cash that isn’t tied to a specific near-term goal. This capital can be positioned more intentionally—based on time horizon and risk tolerance—so it supports long-term objectives rather than sitting on the sidelines.
Ways to activate this bucket can include:
- Reinvesting into your strategic/core allocations (e.g., fixed income and/or broader portfolio exposures aligned to your plan)
- Seeking income and stability with high-quality short-duration bonds
- Actively hedging inflation risk via infrastructure (as an option within a thoughtful strategy)
What to do about it?
Put excess cash to work in a way that’s consistent with your goals, timeline and comfort with risk.
Is your cash doing its job? Chat with an advisor.
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KEY RISKS
Private investment funds (including, without limitation, hedge funds, funds of hedge funds, private equity funds, real estate funds, etc.) are subject to special risks, including risk of loss of the entire investment and is suitable only for investors with sufficient knowledge and sophistication to evaluate the merits and risks of such investments. As a reminder, private investment funds often engage in leveraging and other speculative investment practices that may increase the risk of investment loss. These investments can be highly illiquid, and may not be required to provide periodic pricing or valuation information to investors, and may involve complex tax structures and delays in distributing important tax information. Distributions are not guaranteed and may be modified at the Fund Board s discretion. These investments are not subject to the same regulatory requirements as mutual funds; and often charge high fees (performance fees in addition to management fees). Further, any number of conflicts of interest may exist in the context of the management and/or operation of any such fund. For comprehensive details around unique set of risks for specific alternative investments, please refer to the applicable offering memorandum.
Investing in alternative assets involves higher risks than traditional investments, including, without limitation, limited liquidity and valuation risk, and is suitable only for investors with sufficient knowledge and sophistication to evaluate the merits and risks of such investments. Alternative investments should not be deemed a complete investment program and distributions are not guaranteed. They may not be tax efficient, and an investor should consult with their tax professional prior to investing. Alternative investments often have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the investment loss or gain—including risk of loss of the entire investment. For comprehensive details around unique set of risks for specific alternative investments, please consult the offering memorandum.
