- On the heels of gathering $51 billion in net inflows during 2021, flows into liquid alternative strategies remain strong in 2022, with $34 billion in net inflows through June 30.
- Renewed interest in the space comes after a meteoric rise and fall of offerings in the early days of the category. While performance drove some of the exodus, much of the general disappointment was traced to a financial advisor universe that lacked an understanding of what vehicles were being purchased and why.
- It is not surprising that a recent FUSE/WealthManagement.com survey of financial advisors identified some of the leading asset gathers as tops for providing education.
- Today’s investor backdrop (increased volatility, income needs, focus on capital preservation) is prime for alternative investments. The key to fostering adoption and limiting the asset rotation of previous years will be properly educating mainstream financial advisors and preparing them to explain the benefits to their clients.
- Firms willing to commit to this endeavor, such as those noted in the exhibit, will reap the rewards.
Liquid Alternatives: Education Leaders
Source: FUSE Research, WealthManagement.com