Financial advisors want asset managers to provide more education on alternatives

Financial advisors want asset managers to provide more education on alternatives
Research reveals the types of educational material most wanted.
DEC 22, 2023

With interest in alternative asset classes growing among retail investors, financial advisors are keen to become more knowledgeable.

Most advisors (70%) surveyed by Fuse Research Network said that there is a lack of alternative investing educational materials, and they want asset managers to address this with online tools.

More than four in ten respondents to the Advisor Trend Monitor Series Report – Alternative Products: The Advisor View,  said they are very interested in resources while 85% are interested overall and 80% are interested in those that fit into seven specific categories.  

These include:

  • Online tools to model impact of alternatives on a portfolio
  • Strategy-specific content
  • Practice management guide for explaining alternatives to clients
  • Intro to alternatives
  • Usage of alternatives (portfolio construction guidance)
  • Due diligence guidance
  • Operational guidance on using alternatives

“This is an opportunity for firms to differentiate their alternative offerings with quality marketing programs,” said Mike Evans, Director of BenchMark Research at FUSE Research. “Focusing on topics that support their overall brand and providing advisors much-needed alternative support materials will deliver the greatest lift for the organization.”

The alternatives education gap has also been highlighted by Invesco’s head of Americas distribution, John McDonough.

Writing for InvestmentNews he said overcoming the educational gap is the key to helping financial professionals feel more confident allocating to alternatives and tackling the educational burden requires a dedicated effort from both financial professionals and product specialists.

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