So-called "non-correlated" alternative asset classes are growing in popularity among advisors, and a new survey from Jackson National Life finds that more than nine out of 10 advisors expect to increase their use of alternative asset classes over the next year.
The results of the Elite Access Alternative Investment Survey, released on Tuesday, "showed an overwhelming increase in the expected use of alternatives to help offset market volatility and potentially improve portfolio diversification," according to the Lansing, Mich.-based company. Advisors also expressed a growing demand for guided strategies to help leverage alternatives within client portfolios.
Among advisors who anticipate an increase, more than half said they would increase their use of alternatives by 15% or more in the next 12 months. Nearly a third will boost their use of alternatives by 20% or more. Of the small percentage of advisors who have not used alternative asset classes to date, more than 90% say they are now considering using them.
"The trend toward alternative asset classes among retail investors has been growing steadily for the past several years and this survey highlights the growing demand for new strategies," Clifford Jack, executive vice president and head of retail for Jackson, said in a statement. "Over the last decade, markets have experienced record volatility. We're entering a new era of diversification and alternative asset classes are becoming a significant part of that development."
