Global macro funds and global tactical asset allocation mutual funds are the most popular type of retail alternative funds among financial advisors, according to a new report.
Ignites Distribution Research unveiled this finding in a new report, which polled the Financial Times Top 400 advisors—a list of elite advisors at national, regional and independent broker-dealers with the average advisor managing more than $1.3 billion in assets.
Nearly a third (32.9 percent) of the FT400 advisors plan to start or increase usage of global macro and tactical asset allocation funds within the next six months. The next four most popular retail investment alternatives include long/short equity, multistrategy, long/short debt and event driven investments.
The survey adds that while retail alternative funds make up 3.0 percent of fund industry assets, the FT400 advisors have 8.4 percent of fund assets in these products, including in global asset allocation, commodity, long/short and currency funds.