Insights | 10.25.22
Advisors Flock to Alts and Private Funds but Decry Lack of Options
Market volatility has driven more financial advisors to alternative investments and private funds, but many advisors are unhappy with what is being offered by their firms, according to a recent report by Broadridge Financial Solutions. About 67% of advisors say they’re investing in such products now, up from 59% in the first quarter of 2022, according to a survey of 400 financial advisors in September. In addition, 52% of advisors already using alternatives and private funds plan to increase their use over the next two years, the survey shows. However, only 27% of advisors using or planning to use private funds and alternative investments report being very satisfied with the products and resources available through their firm, according to the survey. Moreover, 16% of advisors report being dissatisfied. “Advisors are acutely feeling the need for diversification in their clients’ portfolios but remain dissatisfied with the private fund and alternative investment products and resources available to them, largely due to limited availability and restrictive options,” said Matthew Schiffman, principal of distribution insight at Broadridge.
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