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Laxman Pai, Opalesque Asia: Financial advisors are increasingly leaning on private funds and alternative investments amid volatile equity and bond markets, said a survey.
Despite this surge, the surveyed advisors claim to lack sufficient options and the right resources from asset managers needed to implement these products in their portfolios, reported the survey of 400 financial advisors by Broadridge Financial Solutions.
The Fintech firm found that 67 percent of advisers said they were recommending alternatives and private funds today, compared to 59 percent in the first quarter of 2022. Meanwhile, 52 percent of those already opting for alternatives said they plan to increase usage over the next two years.
"The use of the private fund and alternative investment products continues to steadily increase over recent years, particularly as investors and advisors look for diversified assets that are not correlated with traditional asset classes," it said.
The survey also found that diversification is the most common reason for advisers using or considering such products (76 percent cite it as a top reason), followed by non-correlation with equity markets (69 percent).
However, just a 27 percent of financial advisors who use or plan to use alternatives are very satisfied with the private funds and alternative investments products and resources available through their firm, while 16percent report dissatisfaction overall.
As advisors seek diversification, many ...................... To view our full article Click here
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