High-net-worth female investors show strong interest in alternative assets but fewer than half hold them in their portfolios, according to Brookfield Asset Management's Alts Institute survey. The analysis suggests that more women would buy alts if their advisors recommended they do so.
Women's disciplined, long-term approach to investing aligns well with alternative investments but despite strong interest and positive sentiment about alternatives, only 44% currently invest in them, according to Brookfield, an alternatives asset manager that tapped CoreData to conduct the survey on behalf of its private wealth business.
The survey examined the attitudes and behaviors of high-net-worth investors in the United States and Canada with at least $2.5 million in investable assets, Brookfield said Tuesday.
Among the findings about wealthy female investors, large majorities believe that diversification is critical to managing portfolio risk and are focused mostly on long-term investing, Brookfield said. Nearly 90% trust their advisors to make good decisions on alternatives but want to understand their investments, the firm found.
Also, the survey found that 76% want their advisors to stay ahead of the curve on new alternative investment opportunities, Brookfield said.
Women surveyed who were already invested in alternatives were overwhelmingly satisfied with the assets' performance and open to investing in asset classes they didn't currently own, and a large majority were interested in boosting their allocation to alternatives.
Those not invested in alts are open to doing so and say the main reason they haven't invested in them is that their advisors haven't discussed them, Brookfield said. Nearly 70% said they would starting investing in alts if their advisors recommended it, and nearly 75% said they would start investing in alts if their advisors focused on benefits for the portfolio rather than on a specific product, according to the survey
"As the Great Wealth Transfer continues, women are taking on an even larger role in managing wealth," said John Sweeney, CEO of Brookfield's private wealth business. "Through our Women & Wealth Initiative, we are committed to equipping advisors with the education and resources they need to engage women investors more effectively around alternatives. We look forward to continuing to partner with both female advisors and investors as the market evolves."
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