PALM DESERT, CALIF.—As investors have fled equity funds, the industry’s move into alternative investments has become one of the biggest concerns of directors of the board.

“Inflation-protected, dynamic allocation, tactical funds—all are loaded up with derivatives and incredibly complicated instruments,” noted Gary Moody, an independent director at AllianceBernstein, speaking at the “Board Perspectives” panel at the Investment Company Institute’s Tax and Accounting Conference here Tuesday.

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