FundQuest, a provider of managed accounts, has adjusted its recommended allocation to include three additional alternative asset classes on its open architecture platform for advisers: commodities, hedge-style funds and international bond funds.
FundQuest, a Boston unit of BNP Paribas SA, said the move, announced Wednesday, will help diversify portfolios. In its model-based portfolios, about 10% of assets are allocated to alternative investment classes. For adviser-directed portfolios, FundQuest offers hedge-style mutual funds and research-based recommendations.
FundQuest said commodities can provide inflation protection, hedge-style mutual funds exhibit low correlations to long-only stock and bond indexes and international bonds are more attractive than U.S. bonds in this market environment.