More than four out of five (81%) financial advisers and wealth managers said clients have been investing in a wider range of assets than normal over the past 12 months, according to research by Ortec Finance.
The firms of the individuals taking part collectively manage approximately £1.207trn.
Researchers also found that nearly all (97%) advisers stated that clients are building ‘more international and diversified portfolios’, with 87% expecting this trend to continue over the next three years.
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Alternative assets have seen a rise in popularity, with 91% of advisers increasing client allocations. The primary drivers of this referenced include strong performance (71%) and the availability of more funds (53%). Additionally, 50% of respondents pointed to attractive returns and low correlation to equities as motivating factors.
The Ortec Finance research found private equity and private debt have seen the biggest increases over the past year, with other alternative asset classes also seeing growth in allocations, at a cost of real estate. Over the next two years private debt and private equity are likely to see the biggest increase in allocations.
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Tessa Kuijl, managing director global wealth solutions at Ortec Finance, said: “Wealth managers and financial advisers are adapting to a much wider range of investments as clients’ investment opportunities broaden. The shift to more diversified portfolios including more alternatives and international portfolios demand expanded expertise from wealth managers and advisers.
“We deem this a positive trend because it enables clients to benefit from a better risk-return equation to increase the probability of reaching their goals.”
