Nontraditional investments could grow to 10%-15% of mutual funds in 10 years, according to Cerulli

My Comment: For at least 18 months, I’ve been including a program featuring “alternative investments” in my client portfolios. The logic behind this is/was to build portfolios that are less likely to tumble when interest rates finally start an upward movement and to include elements that are relatively uncorrelated with the equity markets in general.

The name of the program I’ve been using is called Managed Alternative Assets and it comes from Purcell Advisory Services, LLC. My clients and I have been very pleased with the results. If you are inclined to know more, then click on the image that accompanies this blog post and you’ll find yourself watching a short video that includes information about Managed Alternative Assets.

By Janet Levaux, AdvisorOne / June 4, 2012

Two separate studies released Friday show that asset managers and advisors are increasingly turning to alternative investments to help clients boost returns while supporting the growth of assets under management.

Boston-based Cerulli says its annual examination of the retail alternatives and ETF marketplaces found that asset managers expect alternative mutual funds to comprise nearly 10% of all mutual funds within five years. Plus, this percentage should jump to more than 15% in 10 years.

In a separate study conducted by Practical Perspectives, a Boston-based consulting and research firm, financial advisors indicated that they expect continued growth in their use of alternatives and nontraditional investments. Most advisors currently allocate up to 15% of a typical client portfolio to these products, which is likely to increase as advisors grow more familiar with their benefits and uses, the report concludes.