A bi-annual survey of 400 financial advisors released by Broadridge Financial Solutions, a global Fintech leader, finds that advisors are increasingly leaning on private funds and alternative investments amid volatile equity and bond markets. Despite this surge, the surveyed advisors claim to lack sufficient options and the right resources from asset managers needed to implement these products in their portfolios.
The use of private fund and alternative investment products continues to steadily increase over recent years, particularly as investors and advisors look for diversified assets that are not correlated with traditional asset classes. About 67 percent of advisors report using such products today, compared to 59 percent in the first quarter of 2022, and 52 percent of current users report that they plan to increase usage over the next two years. The survey also finds that diversification is the most common reason why advisors are using or considering such products (76 p