Forty-Two Percent of Advisors Report Using Alternatives in Clients‘ Portfolios in the Past 12 Months

December 1, 2022

ISS Market Intelligence Survey Shows Growing Interest from Financial Advisors in Alternatives

NEW YORK (December 1, 2022) – ISS Market Intelligence (ISS MI), a unit of Institutional Shareholder Services providing critical data and insight to global asset managers, insurance companies, and distributors to help them make informed and strategic decisions to manage and grow their business, today announced the release of its latest Selling Retail Investment Products through Intermediaries Report based on 810 confidential interviews of U.S.-based financial advisors in September.

Notably, the survey finds a three-point increase in the use of alternatives, from 39 percent in Q4 of 2021 to 42 percent in June of 2022.  Interest in alternatives has been rising steadily with improved product access, analytical tools, and support, with wirehouse advisors found to be higher users of alternatives driven by greater support and a focus on affluent clients.

Survey findings show advisors have increased investing client dollars across all types of alternative investment solutions, leading with non-traded REITs and followed by private credit and private equity. Amongst advisors currently using alternatives, private credit and private equity are the areas expected to see the highest increase in dollars invested over the next 12 months.

While access has improved, liquidity, paperwork, fees, home office restrictions, and product understanding remain barriers impacting adoption, the report finds. Among advisors currently using alternatives, more alternative product choice is the top driver for increasing use of alternatives in client portfolios. Better support ranks a distant 5th place, survey results show. However, better support could be argued as essential in driving further adoption, as evidenced by the elevated support at wirehouses.

While there is demand for better tools, advisors currently using alternatives are likely comfortable enough with the tools or processes they currently use.

“Advisors need to be aware of all the tools and applications available to access and manage alternatives,” said Greg Bawin, Head of U.S. Research at ISS Market Intelligence. “Better tools will be critical as advisors adopt a broader range of alternative types and offer them across more of their client base.”


About ISS Market Intelligence
ISS Market Intelligence (MI) is a leading global provider of data, analytics, insights, media, and events solutions to the global financial services industry. ISS MI empowers global asset and wealth management firms, insurance companies, distributors, service providers, and technology firms by providing cutting-edge market-engagement platforms and the actionable intelligence necessary to fully assess their target markets, identify and analyze the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business.  ISS MI clients benefit from our increasingly connected global ecosystem that leverages a combination of proprietary data, powerful software and analytics, timely and relevant insights, in-depth research, as well as an extensive suite of industry leading media brands that deliver unmatched market connectivity through news and editorial content, events, training, ratings, and awards. ISS MI data and analytics solutions include intelligence from BrightScope, Discovery Data, Financial Clarity, Flowspring, FWW, Investor Economics, MISight, Mortgage Clarity, Plan for Life, RainmakerLive, and Simfund, and ISS MI media brands and market-engagement platforms include Chief Investment Officer, PlanAdvisor, PlanSponsor, Financial Standard, FS Sustainability, Money, and Industry Moves.

About ISS
Founded in 1985, Institutional Shareholder Services group of companies (ISS) empowers investors and companies to build for long-term and sustainable growth by providing high-quality data, analytics and insight. ISS, which is majority owned by Deutsche Bourse Group, along with Genstar Capital and ISS management, is a leading provider of corporate governance and responsible investment solutions, market intelligence, fund services, and events and editorial content for institutional investors and corporations, globally. ISS operates on an arm’s-length basis and Deutsche Bourse has adopted Principles protecting the independence and integrity of ISS’ research offerings. ISS’ 2,000 employees operate worldwide across more than 30 global offices in 15 countries. Its more than 4,000 clients include many of the world’s leading institutional investors who rely on ISS’ objective and impartial ESG and governance research, market intelligence and fund services and data and analytics, as well as public companies focused on ESG and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS’ expertise to help them make informed investment decisions.  

Media Contact:

Audrey Dedrick
Analyst, Communications

Share this