The implication for the wealth management channel is straightforward: when it comes to alternatives, the conversation that matters is the one that happens in an advisor’s office. Clients are not going to self-educate their way into private markets through podcasts or Instagram. This aligns with the broader industry observation that Franklin Templeton Canada, which manages more than US$294 billion in alternatives globally, has consistently emphasised advisor education as a cornerstone of its Canadian distribution strategy.
Barriers are about confidence, not interest
The survey asked respondents which factors would prevent them from investing in alternatives. The responses clustered around confidence and information rather than outright disinterest.
Respondents pointed to complexity, lack of understanding, and uncertainty about fees as the most common deterrents – none of which are inherently insurmountable if addressed through clear advisor communication.
When asked what would make them more comfortable investing, respondents pointed to transparent fees, a verifiable track record, and an advisor recommendation as the top confidence-builders, each cited by between 25 and 39 per cent of the sample. Access through a fund or ETF structure also appealed strongly, with most respondents preferring familiar vehicles as the entry point to unfamiliar asset classes.
The next step leads back to the advisor
Asked what they planned to do next with alternatives, the largest single group of respondents (34.7 per cent) said they planned to ask their advisor for more information. A further share said they were waiting for their advisor to raise the topic. Just 12.6 per cent said they did not know where to start.