HNW Women Embrace Alts

More high-net-worth women allocate a larger share of their portfolios to nontraditional investments than men do.

Of the HNW women and men already invested in alternatives, women have a higher allocation to them than men (27% of their portfolios on average versus 20%), according to a new look at results from MainStay Investments’ “Investing Outside the Box” research released Wednesday.

“While all investors are growing more aware of the value of nontraditional investments, high-net-worth women are especially interested in the benefits alternatives offer,” said Stephen Fisher, president of MainStay Investments, in a press release.

Of the women that currently invest in nontraditional assets, 59% said they are looking to diversify exposure. And the majority of the women surveyed (92%) said they value increased return and growth potential, strong capital growth, and principal protection when considering alternative investments.

“For advisors, this trend presents a tremendous opportunity to help high-net-worth women achieve their investment goals while properly diversifying their portfolios,” added Fisher, in a statement.

The study also found that more women look to advisors for investment ideas regarding nontraditional investments (65% vs. 58% of men), and the study also found there are several things HNW women want when working with a financial advisor to understand a new opportunity such as alternative investments.

According to MainStay, “HNW women appreciate information about potential risks (69%), a description of how these investments work (66%), and charts on how alternatives can impact returns (52%).”

Over the past year alone, more than half of the women surveyed said they have increased their allocations to alternative investments. And 89% of the women who have invested in alternative investments say they would be willing to recommend them to their peers.