News Digest: Survey predicts hyperactivity in alternative asset classes
November 22, 2022
The ongoing market volatility and tightening of monetary policies could result in a large-scale shift towards alternative asset classes. A new independent survey conducted by CAIS and Mercer claims that nine out of 10 financial advisors plan to increase their allocations to this segment over the next two to three years.
The study also revealed that 89% of all alternative asset managers and other financial professionals identified private wealth challen as a greater priority now, when compared to two years ago. It said investors were increasingly viewing alternative investments to seek diversification, capital preservation and uncorrelated returns.
Close to 53% of the 97 financial advisors surveyed said they planned to raise alternative asset allocations to more than 15% over the next two years, one 21% estimated their alternative asset allocations to exceed a quarter of their portfolios. Financial advisors have historically under-allocated to alternatives compared to institutional investors, which often allocate between 30% and 50%.