Financial professionals and their clients are searching for ways to navigate these uncertain times, especially as many investors are planning for, approaching or in retirement. Alternative investments may help – and our recent survey shows both financial professionals and individuals are interested in increasing their allocations to alternatives but desire more education and better conversations.
FS Investments conducted a study in partnership with InvestmentNews Research to gain deeper insight on financial professional and investor goals and their knowledge of alternatives’ benefits, drawbacks and role in constructing diversified portfolios.1
Watch our video for the highlights and read the report to learn why education may be key to better investing outcomes.
Key takeaways
- Financial professionals aim to increase client allocations to alternatives from 5% to 10% over the next 3 years and the number of products used from 4 to 6.
- Investors are open to alternatives and financial professionals believe alternatives can help meet investor needs. Yet conversations between the two about alternatives are not taking place.
- The largest impediment to more productive client conversations about alternatives is likely a knowledge gap. Financial professionals disclosed they need more education on alternatives and believe their clients do as well.
- Conversations between financial professionals and investors should focus on explaining “why alternatives” and portfolio applications for various asset classes and strategies.
