The global market for alternative assets is expected to reach $13 trillion by 2020, almost double the size of the market at the end of 2013. These assets now go well beyond hedge funds and private equity and stretch into distressed debt, infrastructure and timberlands. On the one hand, these asset classes offer diversification and the opportunity to improve portfolio performance while on the other they represent lengthy lock-up periods, uncertain investment costs and new risks.
Investor Economics looked at alternative asset classes in 2011 and we thought it was time to return to this important topic. The lead story in the Winter 2015 Fee-based Report takes a fresh look at alternatives with a bias towards the use of alternative assets by high net worth investors in Canada and the level of participation by advisors who focus on the segment.
The Fee-based Report also looks at another area of growth in the wealth management world – private foundations. The use of foundations is growing as is the pressure on advisors to be able to discuss philanthropy and charitable giving with their clients.
The Fee-based Report is essential reading for all those keen to stay alert to areas of growth and those who need to be aware of trends in managed assets which, for the first time, have broken the $1 trillion barrier.