A growing number of advisors are utilizing
alternative investments and tactical asset allocations to help counter market volatility, according to a new survey by Curian Capital.
The survey, 2012 Outlook for Advisor Priorities, found that approximately two-thirds of advisors have increased their reliance on tactical asset allocation strategies to help counter market turbulence, while more than half have begun using more alternative investment strategies.
Meanwhile, more than 60 percent of respondents said they plan to use more alternatives during the upcoming year, the survey found.
Of those already using alternative investments, 80 percent said their main goal in doing so is to diversify and stabilize clients’ portfolio returns, according to Curian.
“The survey shows that advisors are seeking ways to manage risk and address
volatility in their clients’ portfolios, and are increasingly moving toward solutions that allow for lower correlated assets and better diversification,” said Chris Rosato, senior vice president of strategic development for Curian.
Product providers must focus on digital platform development and add additional resources to help meet demand and improve the asset allocation process, the study said.