Brookfield Study: 34% of Advisors Report Deep Alternatives Knowledge, 13% U.S. Allocation
BAM•Brookfield's study found North American advisors with 'deep alternatives knowledge' rose to 34% from 18% in two years and over half now use more than five alternative products. U.S. advisors allocate 13% to alternatives, with 44% of HNW client assets invested and recommendations planned for 27% of additional clients.
1. Brookfield Study on Alternative Asset Adoption
Brookfield commissioned a wealth management survey to assess how advisors integrate alternative investments into portfolios. The study examined advisor familiarity, allocation trends and product usage across North America and other markets, highlighting the shift from education to implementation.
2. Growth in Advisor Alts Expertise
The percentage of North American advisors self-reporting 'deep alternatives knowledge' climbed to 34% from 18% over the past two years. This doubling reflects deeper advisor engagement with alts and more sophisticated allocation strategies.
3. Rising Allocations and Product Diversity
U.S. advisors now allocate an average 13% of client AUM to alternatives, with 44% of high-net-worth portfolios invested in such assets. More than half of surveyed advisors use over five alternative products, and 27% plan to recommend alts to additional clients in the next two years.
4. Client Factors and Obstacles
Advisors cite client risk tolerance (72%), investment goals (65%) and liquidity needs (47%) as key determinants of alts allocations. The top obstacles are redemption limits and liquidity constraints (50%), lack of client knowledge (46%) and suitability concerns (44%), though appetite for evergreen funds remains strong.
