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

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...