News Digest: Alternative investment and private funds surge: research
October 28, 2022
Advisors globally appear to be leaning on private funds and alternative investments as a cover for the highly volatile equity and bond markets. This analysis is based on a bi-annual survey of 400 financial advisors conducted by Broadridge Financial Solutions.
The use of 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.
Sixty-seven percent of advisors report using such products today, compared to 59% in the first quarter of 2022, and 52% of current users report that they plan to increase usage over the next two years. The survey also finds that diversification is the most common reason why advisors are using or considering such products (76% cite as a top reason), followed by non-correlation with equity markets (69%).