Alternative Investments: Wealth Managers Add Alternatives Because Bonds Pay Next To Nothing (Report)

https://dailyalts.com/wp-content/uploads/2021/09/nut-1126806_640.jpg

A Wealth Management Investment Survey by bfinance found “significant changes” in wealth managers’ strategies.

The recent Wealth Manager Investment Survey by bfinance covered 120 wealth managers handling over $1trn (£720bn) in assets. The survey noted that wealth managers were expanding their investment capabilities, with growing allocations to alternative investments and coverage of an increasingly diverse range of asset classes. (INVESTMENT WEEK)

“In an era of low yields and weak growth forecasts, wealth managers are adding new asset classes and channelling a greater proportion of wealth client assets towards alternative investment strategies in private and liquid markets,” the report observed.

Key insights from the survey on wealth managers’ positioning

  • 80% of wealth managers now integrate ESG considerations as part of their offering, up from 37% three years ago (a 116% increase)
  • 55% plan integration of ESG across all wealth client strategies
  • 35% seek to create specific ESG offerings for those clients that seek this dimension
  • 10% have no intentions in the ESG space
  • 69% said they have added new asset classes for wealth clients within the last three years
  • 52% state they will do so in the next two years
  • 21% of wealth managers expect to increase their use of passive strategies in the next two years, versu 50% in the last three years
  • On alternatives – 60% now provide exposure to private equity, 52% to emerging market debt, 52% private credit, 48% use infrastructure and 42% provide access to hedge funds
  • 63% of wealth managers have reduced the proportion of wealth client assets invested in fixed income
  • 66% have increased allocations to equities
  • 61% have increased allocations to private markets strategies
  • 87% of wealth managers have added new technologies for clients to use within the last three years
  • 90% intend to do so in the next two years

Wealth managers leaning towards alternatives and ESG

Kathryn Saklatvala, senior director and head of investment content at bfinance, said: “It’s fantastic to see the breadth of investment capability that many wealth managers are now able to offer to clients – the results of this survey show a significantly higher usage of strategies such as private equity, infrastructure, private credit and hedge funds than we’ve seen in other studies, and far more widespread integration of ESG factors into investment.”

Related Story: “Replace The Flawed 60/40 Approach With A Multi-Asset Portfolio” – 7IM

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/09/bitcoin-6489755_640.jpg
Digital Assets: Bitcoin Miner Genesis Digital Lands $431M To Expand Operations
September 22, 2021     Digital Assets, News, Venture Capital

Genesis Digital Assets, which runs 2.4% of the bitcoin mining network, has announced a $431 million raise led by Paradigm. Claimed to be the largest ever achieved by a bitcoin…

https://dailyalts.com/wp-content/uploads/2021/09/244002325_a409dcf889_c.jpg
Artificial Intelligence: AI To Help Survey For Endangered Bats Under Bridges
September 22, 2021     Artificial Intelligence, News

Hundreds of thousands of bats from about 40 species routinely nest under US bridges, and many of them are endangered or threatened. Transportation departments must mandatorily check for them before…

https://dailyalts.com/wp-content/uploads/2021/09/Organism-1.0-_-Media.png
Artificial Intelligence: AI Cameras In Amazon Delivery Vehicles Unfairly Penalize Drivers
September 21, 2021     Artificial Intelligence, News

Amazon (NASDAQ: AMZN) installed AI-powered cameras in its delivery fleet in February as an investment in safety technology across its operations. The company said at the time the system would…

https://dailyalts.com/wp-content/uploads/2021/09/cakes-652063_640.jpg
FinTech: Assets, A New Product From Wise, Lets You Spend From Your Stocks Portfolio
September 21, 2021     FinTech, News

Wise (LON: WISE), the UK payments fintech previously known as TransferWise, has taken its first steps into investing solutions. Its Assets product allows users to invest in stocks but also…