The alternative investments universe is expanding

A growing band of Australian investors are broadening their exposures beyond the listed stock market into unlisted investments.

Data from the Australian Tax Office shows self-managed super funds alone had more than $61.7 billion invested in unlisted trusts at the end of September 2016, as well as $6.3 billion in unlisted shares. That's just the tip of the iceberg, with billions of dollars of other private capital continually flowing into unlisted investments.

The universe of unlisted investable assets is also growing exponentially, which is why we sat down with Blue Sky Alternative Investments Managing Director Robert Shand to find out more. With more than $2 billion of private funds under management, he has some interesting pointers for self-managed investors looking to broaden their asset allocation.

Not surprisingly, Shand says Blue Sky's strategy as a listed fund has been built with a long-term focus, which is an attraction for institutional investors, high net worth individuals and family offices alike.

But Blue Sky's investment focus is far from typical, with assets ranging from healthcare and retirement to education, technology, food and water rights.

Watch the video below as Shand explains the investment philosophy behind holding these types of unlisted investments.