ISS MI Research Shows Increase in Advisors Investing in Alternatives, With Private Credit Leading Alternative Investments
Financial advisors are critical in bridging the gap between complex alternative markets and investors’ needs, serving as partners to asset managers facing increased competition for their traditional active strategies. Private credit has become a standout option as investors have heightened concerns about correlation between equity and bond returns.
The Future of Asset Management: ETFs, Alts, and Private Markets Reshape the Retail Landscape
While interest in active ETFs will likely not grow anywhere quickly enough to make up for the losses from active mutual funds, active fund buyers’ shift from mutual funds to ETFs could well put a giant pot of assets—about $1 trillion over five years—in play.
ISS Market Intelligence Projects U.S. AUM to Hit $43.6 trillion by 2029 Amid Surge in Active Strategies and Liquid Alternatives
Our research underscores a pivotal transformation in the investment landscape. The convergence of increased market complexity and investor sophistication is driving the shift toward active strategies and liquid alternatives.
Alternatives Regain Popularity Amid Reset
The increasing market share of heavily passive ETFs have increased pressure on many managers. Alternative assets’ heavy representation in active strategies can help enhance their appeal to players under pressure.
After a Dreary Decade, a Brightening Backdrop for Alts
We expect demand will remain strong in the years ahead. ISS MI’s 2023-2027 outlook projects nearly $240 billion in alternative fund flows over five years, a 12% annual organic growth rate. On the back of brisk sales, AUM is projected to rise 15% annually to almost $620 billion.
Democratization of Alternatives Is Coming, but It’s Not Exactly a Field of Dreams
The current economic and market volatility bodes well for using alternatives in a client’s portfolio and has been a bright spot for mutual fund managers.