Thursday, 29 January 2015
Last updated 32 min ago
Jul 31 2012 | 11:19am ET
Retail investors appetite for alternative investments will continue to grow steadily, McKinsey & Co. predicts.
The consultancy estimates that retail alternative products will account for 13% of total U.S. retail fund assets by 2015, more than double its slice of such assets in 2010. Alternatives' share of retail fund revenues will also grow commensurately, from about 13% to about 25%.
The new demand is fueled by how the products are being structured, financial advisors' enthusiasm for them and how they are being accounted for in portfolios, McKinsey said. But many asset managers are "unprepared for the shift," the firm found.
To combat that unpreparedness, such firms need to boost both their risk-management and sales capacities, McKinsey recommends.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…