Alternatives Pension Funds
Suitable for: Investors seeking diversification beyond traditional asset classes.
Alternative funds use non-traditional investment strategies, including structured products, commodities, absolute return approaches, and hedge-like techniques to add portfolio diversification.
20
Funds tracked7
Providers+10.0%
Avg. 1yrSelect funds below to compare performance over time
| Fund | Risk | Provider | Subcategory | 1Y | 5Y | 10Y | |
|---|---|---|---|---|---|---|---|
| Zurich Life Indexed Commodities | 5 | Zurich Life | Structured Products | +37.54% | - | - | |
| Acorn Life Target Return | 4 | Acorn Life | Alternative Strategy | +20.19% | - | - | |
| Aviva Multi-Asset ESG Passive Plus 5 | 5 | Aviva | Alternative Strategy | +18.26% | - | - | |
| AIB Life Multi-Strategy Alternatives | 3 | AIB Life | Alternative Strategy | +15.16% | - | - | |
| Aviva Fixed ESG 80 | 5 | Aviva | Alternative Strategy | +14.27% | - | - | |
| Zurich Life Dynamic Diversified Growth (BlackRock) | 3 | Zurich Life | Alternative Strategy | +13.86% | +16.88% | +40.74% | |
| Aviva Multi-Asset ESG Passive Plus 4 | 4 | Aviva | Alternative Strategy | +12.88% | - | - | |
| Irish Life Protected Consumer Markets Fund | 3 | Irish Life | Structured Products | +11.43% | +28.23% | +49.35% | |
| Aviva Fixed ESG 60 | 4 | Aviva | Alternative Strategy | +10.61% | - | - | |
| Irish Life Multi-Manager Target Return | 3 | Irish Life | Alternative Strategy | +9.32% | +16.67% | +16.89% | |
| Aviva Concept K | 4 | Aviva | Alternative Strategy | +8.09% | +21.87% | +50.60% | |
| Standard Life GARS | 3 | Standard Life | Alternative Strategy | +7.36% | -7.02% | -6.35% | |
| Aviva Fixed ESG 40 | 4 | Aviva | Alternative Strategy | +7.05% | - | - | |
| Aviva Multi-Asset ESG Passive Plus 3 | 3 | Aviva | Alternative Strategy | +6.02% | - | - | |
| Aviva Fixed ESG 20 | 3 | Aviva | Alternative Strategy | +3.62% | - | - |
20 funds
Funds in this category by provider
Number of funds each provider offers in this category. Click a row to view that provider's full fund range.
About Alternatives
Key Points
Alternatives are about diversification, not necessarily higher returns
They often behave differently from equities and bonds - which can reduce overall portfolio volatility
Most pension investors access alternatives indirectly through multi-asset funds rather than buying standalone alternatives funds
Complexity varies enormously - gold is simple; private equity and hedge funds are complex
Liquidity can be limited for some alternatives (private equity, infrastructure) - less relevant within a pension with a long time horizon
The Aviva SDIO platform provides direct access to private markets and commodities for those who want standalone alternatives exposure
What are Alternatives?
"Alternatives" is a catch-all category for investments that don't fit into the traditional asset classes of equities, bonds, property, or cash. They provide additional diversification because they often behave differently from mainstream markets.
Common Types of Alternatives
Commodities
Physical assets including:
Precious metals (gold, silver) - often used as a hedge against inflation and economic uncertainty
Energy (oil, natural gas)
Agriculture (wheat, coffee, livestock)
Industrial metals (copper, aluminium)
Hedge Funds / Absolute Return
Funds targeting positive returns regardless of market direction. Use non-traditional strategies (long/short positions, leverage, derivatives). Range from conservative to aggressive.
Private Equity
Investments in companies not listed on public stock exchanges. Can involve buying established companies to restructure them, or funding early-stage growth companies. Higher risk, higher potential return, very illiquid.
Infrastructure
Investments in physical assets like roads, bridges, utilities, renewable energy, and telecommunications networks. Often provide steady income with inflation protection.
Target Return / Multi-Strategy
Funds that aim for a specific return target (e.g. cash + 3%) regardless of market conditions. Use a combination of strategies across multiple asset classes and derivatives.
Alternatives Funds by Provider
| Provider | Fund/Exposure | Type |
|---|---|---|
| Acorn Life | Target Return Fund | Absolute return, active, uses derivatives |
| AIB Life | Multi-Strategy Alternatives | Multiple strategies, Risk Rating 3 |
| Aviva | AIMS Target Return Fund | Absolute return |
| Irish Life | MultiManager Target Return | Active multi-strategy |
| Standard Life | GARS (Global Absolute Return Strategies) | Absolute return |
| Zurich | Dynamic Diversified Growth (BlackRock), Indexed Commodities | Diversified growth; commodity |
Role in a Pension Portfolio
Alternatives are rarely used as standalone investments in Irish pensions. They typically appear:
As a component within multi-asset funds (5-15% allocation)
As a diversifier alongside equity and bond holdings
As a tactical allocation during uncertain markets
Frequently asked questions about Alternatives funds
Alternatives is a catch-all category for investments that don't fit into traditional asset classes of equities, bonds, property, or cash. They include absolute return strategies, commodities, and other non-traditional approaches. Their main appeal is providing diversification because they often behave differently from mainstream markets.
Options include Acorn Life Target Return Fund, AIB Life Multi-Strategy Alternatives, Aviva AIMS Target Return Fund, Irish Life MultiManager Target Return, Standard Life GARS (Global Absolute Return Strategies), and Zurich Dynamic Diversified Growth and Indexed Commodities.
Risk varies widely - from 3 to 6 on the SRI scale depending on the specific strategy. Absolute return funds typically target steady, moderate returns (risk 3–4), while commodity-focused or more aggressive strategies may be rated higher. The variability is the main distinguishing feature of this category.
Alternatives are rarely used as standalone investments in Irish pensions. They typically appear as a component within multi-asset funds (5–15% allocation), as a diversifier alongside equity and bond holdings, or as a tactical allocation during uncertain markets. Their low correlation with traditional markets can reduce overall portfolio volatility.
Absolute return funds target positive returns regardless of market direction. They use non-traditional strategies including long/short positions, leverage, and derivatives. They aim for a specific return target (e.g. cash + 3%) rather than simply beating a market index. They range from conservative to aggressive depending on the strategy employed.
Most pension investors access alternatives indirectly through multi-asset funds rather than buying standalone alternatives funds. Standalone alternatives may suit investors who want specific diversification beyond standard equity/bond mixes. Complexity varies enormously - a gold fund is simple, while hedge fund strategies are complex.
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