Data

Alternatives by the numbers

While individual investors' allocations to alternative investments average less than 10%, interest in alts is rising.

Portfolio allocations to alts among individual investors average less than 10%, compared with about 30% among institutional investors and even more among the largest university endowments. But interest in alts is rising, and advisers will play a role in boosting the average as they educate more clients about them. The data suggest ways to do that and what motivates advisers. Unless otherwise noted, all data come from a November 2016 survey of about 400 advisers, “Alternatives in the Mainstream,” a white paper by InvestmentNews Research and Blackstone.

ADVISERS WANT TO BOOST ALTS ALLOCATIONS

Motivations for incorporating more alternatives in portfolios

CLIENTS NEED  MORE ALTS  EDUCATION

Best ways to improve  understanding about these investments

14%

of individual client portfolios will be in alternatives by 2020, on average

67%

of advisers say clients’ “lack of understanding is a key impediment”  to alts allocation

WHO’S ALLOCATING THE MOST TO ALTS?

Percentage of clients with alternatives in their portfolios

% in 2016

Projected % in 2020

Less than $50 million

$50 million to $250 million

$250 million and up

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