Bob FraserCFO & Macro Strategist | Data-Driven Investing Expert | Speaker & Author

Most advisers want to invest more with their client's money into alternative investment | Ben Fraser

Name: Most advisers want to invest more with their client's money into alternative investment | Ben Fraser
Uploaded: 2022-08-14T08:00:31+00:00
Duration: 34 s
Channel: Bob Fraser
Description: In this segment, Ben Fraser outlines the advantages and disadvantages of allocating client portfolios to alternative investments. He references research…

14 Aug 2022 · 1 min

Watch on YouTube

0:34

In this segment, Ben Fraser outlines the advantages and disadvantages of allocating client portfolios to alternative investments. He references research indicating that the majority of financial advisors are inclined to increase exposure to alternatives, primarily because they perceive two key benefits: the potential for higher returns and the ability to achieve uncorrelated diversification, which can reduce portfolio risk. While acknowledging that alternatives are not without drawbacks, the speaker frames the discussion around why advisors are motivated to shift more client money into this asset class.

Chapters

at a very high level, you know, what are some of the pros and what are some of the cons of investing in alts, right? Not everything is rosy and perfect and great and always going to go up, right? There are disadvantages too, but let's talk about those. And really, you know, I referenced it earlier in kind of some research done with some financial advisors, and most advisors want to invest more with their clients' money into alternative investments. And the primary two reasons are very simple. It was— One, better returns, and two, better diversification. Uncorrelated. Uncorrelated diversification, uncorrelated returns.