High-net-worth women are eager to add alternative investments to their portfolios, but most are still sitting on the sidelines, mostly because their advisors have never brought it up.
That is the central finding of a new survey from Brookfield's Alts Institute, conducted by CoreData on behalf of Brookfield's private wealth business. The research examined the attitudes of wealthy investors in the US and Canada with at least $2.5 million in household investable assets, with a particular focus on women.
The results point to an underserved client segment whose investment instincts are well-suited to private markets and who are far more open to alternatives than their current allocation levels would suggest. Only 44% of female respondents currently hold alternative investments, despite widespread interest in the asset class.
The alignment between how women tend to invest and how alternatives work is hard to miss. Nearly nine in ten respondents said their primary focus is long-term investing, and 94% called diversification critical to managing portfolio risk, both orientations that private markets strategies are designed to serve.
Among women already invested in alternatives, 95% said they are happy with the performance of their holdings, 82% said they are open to adding asset classes they do not yet own, and 68% expressed a desire to grow their allocation further.
But the top reason women gave for not investing in alternatives was simply that their advisor had never discussed the option with them.
When asked what would change their minds, 69% said a recommendation from their advisor would be enough. That number climbs to 74% when advisors frame the conversation around the portfolio's overall benefits rather than leading with the product itself.
"As the Great Wealth Transfer continues, women are taking on an even larger role in managing wealth. Through our Women & Wealth Initiative, we are committed to equipping advisors with the education and resources they need to engage women investors more effectively around alternatives. We look forward to continuing to partner with both female advisors and investors as the market evolves," said John Sweeney, CEO of Brookfield's private wealth business.
Eighty-eight percent of female respondents said they rely on their advisor to make sound decisions around alternatives, but they also want to understand what they own. And 76% expect their advisor to proactively surface new opportunities in the space as they emerge.
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