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Laxman Pai, Opalesque Asia: High-net-worth investors (HNWIs) are carving out more space in portfolios for alternative assets: 4 in 10 now have weightings of 20%-plus, said a study.
According to Connection Capital's private client Alternatives Investment 2022 Survey, the private investors' exposure to alternative investments has been increasing steadily as they hunt for superior returns and diversification from quoted markets.
In 2018, the first year the survey was carried out, a quarter (26%) of respondents had 20% or more of their portfolios invested in alternatives, and this had risen to around a third (35%) last year.
"Almost three-quarters of HNWIs (74%) are now allocating more than 10% of their portfolios to alternative investments, up from just over two-thirds (68%) last year and a half (50%) in 2018, demonstrating how mainstream the asset class has become. Alternative investments include private equity, private debt, commercial property, infrastructure, and alternative fund strategies," the report said.
The findings point to a major overhaul of the traditional portfolio mix of a 60% allocation to quoted equities and 40% to bonds, as investors look at ways to safeguard their capital and make money as economic and financial market conditions deteriorate.
Claire Madden, Managing Partner at Connection Capital comments, "Experienced private investors are not just dabbling in alternative investments - many are carving out a significant space for ...................... To view our full article Click here
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