Chart of the week

Many advisors turn to alts to differentiate themselves

Allocating to alternative investments may help advisors set themselves apart and win new clients, according to an advisor survey.

Advisor views: How alternative investments benefit their practice

Column chart showing advisors views on how allocating to alternative investments may benefit advisors. 83% of surveyed advisors think alts can help differentiate an advisor from their peers. 59% believe allocating to alts can help win new clients while just over half believe they can help gain wallet share from current clients.

Data based on CAIS-Mercer survey, The State of Alternative Investments in Wealth Management, December 2023.

  • According to a CAIS-Mercer survey, private equity, private debt and real estate are among surveyed advisors’ primary focal points during 2024.  
  • Against the backdrop of a historically concentrated equity market in which bonds provide little diversification, advisors have increasingly focused on alternative investments such as these.
  • Incorporating these and other alternative asset classes may help advisors provide enhanced portfolio returns, increased diversification benefits and draw additional income for clients.
  • The survey rightfully focused on alts’ potential benefits to clients—but advisors’ belief that allocating to alts gives them a competitive advantage was also a notable takeaway.
  • In addition to helping clients meet their goals, advisors believe alts can differentiate their practice, help them win new clients and gain wallet share from those they currently serve.
  • Alts have seen increased advisor interest during the past decade for many investment-centric reasons. That they can help diversify clients’ portfolios while also differentiating an advisor’s business may make them a remarkable win-win proposition for many.

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