Daily Alts – The liquid-alternatives industry continues to grow dramatically. Net inflows were over $40 billion in 2013 and the growth trend has continued this year. The combination of stretched equity valuations, an uncertain outlook for bonds, and geopolitical turmoil is supporting the case for alternatives.
Investors who understand the purpose and place of alternatives appear to be allocating enough to make a difference. According to MainStay Investments’ recent survey of more than 800 High Net Worth investors, over 60% are using alternatives, to which they are allocating 22% of their portfolio, on average. Barron’s most recent annual survey of the top 40 wealth advisory firms reported that these firms also had 20% of clients’ assets allocated to alternatives, on average.
