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B. G., Opalesque Geneva:

Cerulli Associates, a market intelligence provider, and Blue Vault polled more than U.S. 100 advisors, many of who are independent broker/dealers (IBD), on their use of alternative investments during the first half of 2022. They found that advisors had allocated an average of 14.5% to alternatives and were looking to increase this to 17.5% in two years.

According to Cerulli, the figures are unexpectedly high (above the already elevated 10.5% suggested by the 2021 survey) and contradict the asset amounts currently invested in such alternative strategies (Cerulli believes the allocation - a combination of both alternatives and commodities - is indeed growing but is likely closer to high single digits). Still, Cerulli finds the response to be indicative of a mood where a range of alternative allocations hit their stride-from commodities playing a greater role due to inflation and the Russia-Ukraine war to private capital exposures offering income and volatility smoothing. Advisors are increasingly aware of these product offerings as a wave of both traditional and alternative managers build out capabilities and wholesalers reach out to explain the benefits of the exposures.

Cerulli published its white paper, Alternative Investments in 2022: Capitalizing on Markets in Turmoil, in July.

Goals of alternati......................

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