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Alternative Market Briefing

27% of advisors globally regularly use alternative products and strategies

Tuesday, November 05, 2013

Benedicte Gravrand, Opalesque Geneva:

Three in four advisors said in a recent that survey they talk about alternative investments with clients, especially in the U.S. and the Middle East. But 67% and 80% of advisors in the U.S. and U.K. estimate their clients, at best, have very little understanding of alternative investments. Advisors believe they understand alternatives better; a fifth say they understand alternatives very well and more than half say they understand them fairly well.

This is according to the 2013 Global Survey of Financial Advisors, commissioned by Natixis Global Asset Management and conducted by Core Data Research, a London-based financial research company. It involved 1,300 independent financial advisors across nine countries in Asia, Europe, the Americas and the Middle-East, and was done in August and September 2013.

The common hurdle when it comes to alternatives is that clients mostly see them as too risky, and advisors see them as too complex to explain. Alternatives here include private equity, hedge funds, commodities, futures, gold and precious metals, shorting of shares, currencies, options, real estate, absolute return funds, ETFs, multi-manager funds, international bonds and shares.

Natixis found in its separate 2013 Survey fo......................

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