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: 2022-08-16T08:00:12+00:00
Duration: 34 s
Channel: Bob Fraser
Description: In this brief segment, the speaker outlines the main advantages and disadvantages of allocating client capital to alternative investments. Citing…

16 Aug 2022 · 1 min

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In this brief segment, the speaker outlines the main advantages and disadvantages of allocating client capital to alternative investments. Citing research with financial advisors, the speaker notes that most advisors are inclined to increase exposure to alternatives primarily for two reasons: the potential for higher returns and the benefit of uncorrelated diversification, which can improve portfolio risk‑adjusted performance. While acknowledging that alternatives are not without drawbacks, the focus is on these two key drivers behind advisors’ growing interest.

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.