Wealth Managers Increasingly Tilt Towards Alternatives – Mercer

Editorial Staff

7 October 2022

A report by investment consultants Mercer has found that a growing number of wealth managers will be diversifying clients’ portfolios into less liquid areas such as property and private equity over the next 12 months.

The study found that 73 per cent of managers are thinking of making such a move. Mercer’s 2022 Global Wealth Management Survey canvassed the views of 125 wealth managers in 26 countries

An overwhelming majority (86 per cent) of firms said the main reason for investing in private markets and other illiquid asset classes is for better yields or enhanced investment returns.

Typically less liquid than listed stocks and government bonds, these “alternatives” usually offer higher yields – an attractive proposition in a world of high inflation. Last week, has predicted that the amount of money invested in private capital – such as venture capital, private equity and debt – is expected to double by 2027 reaching $18.3 trillion.