A new survey by Brookfield Oaktree Wealth Solutions reveals a growing appetite for alternative investments among high-net-worth individuals and financial advisors. The study, conducted by CoreData, offers insights into the changing landscape of investment strategies for those with significant assets.
Key findings include:
• Existing alternative investment users are eager to expand their portfolios:
– 88% are open to increasing their alternative investments
– 81% believe alternatives will outperform traditional portfolios in the long run
– Over half would consider allocating 20% or more to alternatives if advised
• Non-users show strong interest, with barriers primarily related to knowledge:
– 72% would invest in alternatives with better understanding
– 70% would do so on their financial advisor’s recommendation
• Financial advisors see alternatives as a growth opportunity:
– About 72% view alternative investment expertise as a key driver for business growth
– 85% report enhanced client conversations about portfolio construction
– 91% believe building knowledge in this area is worthwhile
The survey also highlights a potential shift in client-advisor relationships, with 41% of high-net-worth investors considering changing advisors to gain better access to high-quality alternative investments.
Brookfield Oaktree Wealth Solutions provides alternative investments to advisors and their clients, leveraging the global scale and long track records of its parent companies, Brookfield Asset Management and Oaktree Capital Management. The firm’s CEO, John Sweeney, emphasized the growing demand for alternative products highlighted by the survey and the crucial role advisors play in guiding investors through this landscape. “By developing and leveraging their alternatives expertise, advisors can differentiate their practice in the market, recruit new prospects, and deliver significant value,” Sweeney stated.
To support this trend, the company has launched The Alts Institute, a comprehensive platform offering resources, strategies, and best practices for financial advisors to navigate the alternatives market effectively.
The survey included high-net-worth investors in the U.S. and Canada with at least $2.5 million in investable assets, and financial advisors managing an average of $633 million in assets. Additional research was conducted in Hong Kong, Singapore, and Taiwan, indicating a global interest in alternative investments.