McKinsey: Retail Alternatives To Double By 2015

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.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of