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Alternative Market Briefing

Survey highlights growing appetite for alternative investments in the high-net-worth space

Wednesday, October 09, 2024

Laxman Pai, Opalesque Asia:

According to a study, most high-net-worth (HNW) investors already holding alternative allocations are interested in ramping up their exposure.

Eighty-eight percent of those using alternative assets are open to increasing their investments, while 78 percent are seeking a broader range of options, said the new survey from Brookfield Oaktree Wealth Solutions.

Another 81 percent of HNW investors believe that alternatives will yield stronger long-term outcomes compared to traditional portfolios, while more than half said they'd be comfortable having at least 20 percent of their portfolio in alts if their advisor were to suggest it, said the survey.

The survey, conducted by CoreData, assessed investor and financial advisor sentiment across the US and Canada, focusing on individuals with at least $2.5 million in investable assets. It also included financial advisors managing an average of $633 million in assets.

Those who are not alts investors (yet) are very open to them: 72% would begin investing in alternatives if they better understood the available options. 70% say they would begin investing in alternatives if their financial advisor recommended it.

Nearly 72% of advisors say alternative investment expertise will be a meaningful driver in growing their book of business and a broad range of benefits including enhancing absolute returns, client satisfaction, and smoothing revenue volatility.

85% believe that alternative inves......................

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