High-net-worth investors (HNWIs) are including much higher weightings of alternative investments in their portfolios than five years ago, with four in 10 investors (41 percent) now allocating more than 20 percent to the asset class, reveals research by Connection Capital, a specialist private client alternative investments business.
Private investors’ exposure to alternative investments has been increasing steadily as they hunt for superior returns and diversification from quoted markets. In 2018, the first year the survey was carried out, a quarter (26 percent) of respondents had 20 percent or more of their portfolios invested in alternatives, and this had risen to around a third (35 percent) last year.
Almost three-quarters of HNWIs (74 percent) are now allocating more than 10 percent of their portfolios to alternative investments, up from just over two-thirds (68 percent) last year and half (50 percent) in 2018, demonstrating how mainstream the asset class has bec