Jackson National Life Insurance Company
(Jackson) today released the results of the Elite Access Alternative Investment Survey. The survey collected responses from more than 2,000 financial advisers to gauge their use of alternative asset classes and most critical needs from product providers. The responses showed an overwhelming increase in the expected use of alternatives to help offset market volatility and potentially improve portfolio diversification. Advisers also expressed a growing demand for guided strategies to help leverage alternatives within client portfolios.
According to the survey, more than nine out of 10 advisers expect to increase their use of alternative asset classes over the next year. Among those advisers who anticipate an increase, more than half said they would increase their use of alternatives by 15 percent or more in the next 12 months. Nearly a third will boost their use of alternatives by 20 percent or more. Of the small percentage of advisers who have not used alternative asset classes to date, more than 90 percent 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,” said Clifford Jack, executive vice president and head of retail for Jackson. “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.”
The reason for an increased use of alternative asset classes was consistent among advisers, with nearly two-thirds citing further diversification as the primary purpose. However, the practical use of alternatives was not as clear among respondents. Understanding of alternative asset classes and clarity on how to use them within client portfolios topped the list of adviser concerns. The contrast between the demand for alternatives and adviser confidence in their proper utilization highlights a specific knowledge gap for product providers to consider.