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Laxman Pai, Opalesque Asia: A survey based on 810 confidential interviews of U.S.-based financial advisors found a three-point increase in the use of alternatives, from 39 percent in Q4 of 2021 to 42 percent in June of 2022.
Interest in alternatives has been rising steadily with improved product access, analytical tools, and support, with wirehouse advisors, found to be higher users of alternatives driven by greater support and a focus on affluent clients, according to the survey by ISS Market Intelligence (ISS MI), a unit of Institutional Shareholder Services providing critical data and insight to global asset managers, insurance companies, and distributors.
Survey findings show advisors have increased investing client dollars across all types of alternative investment solutions, leading with non-traded REITs and followed by private credit and private equity.
Amongst advisors currently using alternatives, private credit and private equity are the areas expected to see the highest increase in dollars invested over the next 12 months.
While access has improved, liquidity, paperwork, fees, home office restrictions, and product understanding remain barriers impacting adoption, the report finds.
Among advisors currently using alternatives, a more alternative product choice is the top driver for increasing the use of alternatives in client portfolios. Better support ranks a distant 5th place, survey results show. However, better support could be argued as...................... To view our full article Click here
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