Ortec Finance: Increased client allocations to alternative assets
Ortec Finance: Increased client allocations to alternative assets
Clients of wealth managers and financial advisors are widening their investment horizons and are increasingly turning to alternative assets as well building more diversified and international portfolios, new global research from Ortec Finance, the leading global provider of risk and return management solutions for professional investors, shows.
Wealth managers and financial advisers in the UK, Italy, the Netherlands, Switzerland, Germany and Canada were surveyed, whose organizations collectively manage approximately £1.207 trillion, and 81% said clients have been investing in a wider range of asset classes than normal over the past 12 months.
Alternative assets have been a standout area, with 91% of advisors increasing client allocations. The study shows increases in allocations to private equity, hedge funds, private debt, venture capital, infrastructure and real estate. Over the next two years private debt and private equity are likely to see the biggest increase in allocations.
The primary drivers of the increase in allocation to alternatives include strong performance (71%) and the availability of more funds (53%). Additionally, 50% point to the attractive returns and low correlation to equities as motivating factors.
A substantial 97% of advisors state that clients are building more international and diversified portfolios, with 87% expecting this trend to continue over the next three years.