The vast majority of financial advisers and fund selectors say their clients have an allocation to alternative assets, as investors look to diversify their portfolios in a challenging economic environment.
Investment manager TIME Investments commissioned a survey of 200 UK wealth managers, financial advisers, discretionary fund managers, fund selectors and investment analysts.
96 per cent of respondents said their clients have an allocation to alternative investments, which includes asset classes such as private credit and real estate, while a similar percentage believe the current challenging economic climate favours these types of assets.
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When it comes to allocations to alternatives as part of their clients’ portfolios, 29 per cent are targeting a range of six to 10 per cent of their portfolios; 35 per cent are targeting 11 per cent to 15 per cent; and 26 per cent are targeting between 16 per cent and 20 per cent.
However, 78 per cent of respondents said they expect allocation to alternatives to increase over the next 12 months.
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“Our research shows that wealth managers, advisers and investment professionals are already allocating significant proportions of client portfolios to alternative investments, with targets set to increase,” said Henny Dovland, business development director at TIME Investments.
“This is largely driven by the prevailing economic conditions and more conventional asset classes such as equities proving highly volatile. Alternatives provide diversification and attractive yields as investors seek to weather the storm.”
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