Most advisers wish they knew more about alternatives, but...

Most advisers wish they knew more about alternatives, but...
Even though the majority of advisers are not as well-versed on the subject of alternative investments as they might like, few are deterred from increasing allocations in their clients' portfolios.
OCT 14, 2011
Even though the majority of advisers are not as well-versed on the subject of alternative investments as they might like, few are deterred from discussing them with clients — or actually putting them to use in their clients' portfolios. InvestmentNews recently conducted a survey of advisers in advance of our first Alternative Investments Conference that aimed to get advisers' views on alternatives. In one question, we asked point blank: "Do you feel as knowledgeable about alternatives as you'd like to be?" The response? Fifty-two percent of advisers said no. At the same time, 88% said that they feel quite comfortable discussing alternatives with their clients — and 89% of the advisers we surveyed are currently employing alternatives in their clients' portfolios. Now, a lot of investment vehicles can qualify as alternatives — ranging from real estate, to managed futures, to structured products or private equity. So it's possible that advisers feel quite comfortable with certain types of alternatives. More than 70% of advisers surveyed, for example, are currently recommending commodities and real estate strategies. More esoteric strategies, such as structured notes, may be fueling advisers' need for knowledge. To see a few other fast facts from this survey of advisers, click here. And to see deputy editor Evan Cooper's presentation from our Alternative Investments Conference last week, click here. Also, here's a quick video featuring Gabe Burstein talking about why alternatives may actually become more traditional (or at least typical) strategies than anything else --M.B.

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