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Alternatives are becoming a more important part of portfolio strategy
Global research among wealth managers and fund selectors shows growing interest in alternatives as investors look to:
- Diversify and manage risk as part of a total portfolio strategy
- Meet specific investment goals through broader access to alternative strategies
- Build more resilient portfolios with the guidance of their wealth managers
As the alternatives market expands, advisors have an increasingly important role in helping clients understand where alternatives can add value—and how to incorporate them effectively into portfolios.
Our latest global research reveals how conversations around alternatives are evolving, offering insights into how wealth managers and fund selectors are using alternatives to support portfolio construction and address clients’ increasingly specific needs.
The research includes:
- 600 advisors representing an average AUM of $657 million
- 60 fund selectors
- Perspectives from markets around the world on the role of alternatives, client conversations and portfolio construction
- Insights into what leading alternatives firms are doing to help advisors incorporate alternatives effectively
Survey methodology is found at the bottom of this page.
Understanding what drives investors’ interest in alternatives
As alternatives become a larger part of investors’ portfolios, understanding what motivates investors, what they believe and how they view alternatives can help financial professionals have more relevant, meaningful conversations.
Our segmentation analysis of high-net-worth investors in North America and Asia identified three distinct investor profiles, each with different attitudes and motivations toward alternatives.
Our segmentation analysis of high-net-worth investors in North America and Asia identified three distinct investor profiles, each with different attitudes and motivations toward alternatives.
Alts Champions
Ready and Eager to Expand Alternatives Footprint
Key Characteristics
- Focus more on upside potential than downside risk
- Believe alternatives are essential to a successful portfolio strategy
- Want greater variety beyond their current portfolio holdings
Working with Alts Champions
- Provide knowledge and guidance on new alternative investing opportunities
- Explain products or strategies in depth, with a focus on the benefits of alternatives to their portfolio
- Stay “ahead of the curve” on alternatives
Emerging Adopters
Open to Increasing Alts Allocation, Seeking Deeper Insight
Key Characteristics
- Focused on the long term and have a favorable view of alternatives generally
- Comfortable with illiquid investments as long as they can redeem within a reasonable timeframe
- Interested in investing in alts or putting more money into alts and many are willing to allocate as much as 20% to the asset class
Working with Emerging Adopters
- Offer more in-depth knowledge about alternatives and address common misconceptions (e.g., long timeframes and illiquidity)
- Talk about different alts vehicles across public and private markets that align with their risk tolerance and can mitigate liquidity concerns
- Bring alternative investing opportunities that align with their interests
Traditionalists
Willing to Invest in Alternatives, Want Advisor to Make a Strong Case
Key Characteristics
- Focused on the long term and growing their portfolio while keeping an eye on income and capital preservation
- View alternatives more as a diversification tool than a core portfolio holding
- Less knowledgeable about alternatives but willing to invest if their advisor makes a good case for using alternatives in their portfolio
Working with Traditionalists
- Provide education about the benefits of alts and the growing universe of alternatives, including opportunities without long lockups
- Show how alternatives fit with personal goals and interests
- Start with small initial investments and increase exposure after demonstrated success
Survey Methodolgy: Brookfield commissioned CoreData Research to conduct an online survey of 600 wealth managers with an average practice AUM of US$657 million and "60 fund selectors in the US, Canada, the U.K. and Switzerland responsible for evaluating alternative asset managers and products for firm platforms regionally and globally from February to April 2026.
The Alts Institute Alternative Investing Survey responses reflect the views of participants at the time of the survey and may not be representative of all investors. The results presented herein are not indicative of future outcomes or investment behavior. This material is provided for informational and educational purposes only.
Risks to consider: Investing in alternatives entails risk and may not be suitable for all investors. Alternative investments can be illiquid due to restrictions and the lack of a secondary trading market. Before investing in alternatives, investors should carefully consider their investment objectives, time horizon, tax sensitivity and risk appetite. There is no assurance that an alternative investment's objective will be achieved. Investors could lose all or a substantial amount of their investment. Investors and advisors should understand how each investment supports their overall goal and take a diversified approach when adding alternatives to a traditional portfolio.
