More than nine out of 10 advisors anticipate a significant increase in their use of alternative asset classes over the next year. Of those who expect an increase, more than half said the activity would jump 15 percent or more while nearly a third said they would raise their alternative asset activity by 20 percent or more.
The findings come on the heels of the Elite Access Alternative Investment Survey conducted by Jackson National Life Insurance Company (Jackson), Lansing, MI. The survey, comprised of responses from over 2,000 financial advisors, sought to gauge their current use of alternative investment products as well as to pinpoint their most crucial needs from product providers.
Unsurprisingly, the responses showed a zealous interest in increasing the expected use of alternative investments to isolate and diversify client’s portfolios from the current volatility of the market. Since the financial upheaval began in 2008, alternative assets that are uncorrelated to the market have become increasingly alluring to advisors.