A client survey from Connection Capital shows that more that 1/3 of respondents are allocating at least 20% of their portfolio to alternative assets, up by 6% year-over-year. Moreover, 54% said that they increased their portfolio weightings to alternatives in the past 12 months, Peer-2-Peer Finance News reports.
“More and more experienced private investors are seeing the merits of diversifying across alternatives to boost returns and resilience,” says Claire Madden, managing partner at Connection Capital.
Following the recent market turbulence, private investors want to decrease their exposure to traditional assets i.e. listed equities and bonds. By investing in alternatives investors intend to diversify their portfolios with uncorrelated assets.
Alternative financial assets cover asset types such as private equity, commercial property (REIT), private debt and direct lending.
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