Liquid Alternatives: What Happened and What Comes Next

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Recent research from MMI and Dover Financial Research shows that investors pulled back from liquid alternatives in 2015 after several years of strong growth in the category. Meanwhile, some firms continue to recommend strategic alternative allocations of 10% to 20% or more, while most client portfolios hold 5% or less.

Investors' hot and cold relationship with liquid alternatives raises several important questions:

  • Is the pullback due to poor product design, unrealistic investor expectations, strong performance by traditional assets, or a combination of these factors?
  • How can we bridge the education/knowledge gap between providers, gatekeepers, advisors and clients?
  • How does regulatory scrutiny change the landscape?
  • What products are most likely to succeed going forward?

This MMI NetMeeting, which builds on the findings from the 2016 edition of the MMI/Dover report on Distribution of Alternative Investments through Wirehouses, addressed the challenges, opportunities, and breakthroughs involved in harnessing liquid alternatives to protect client capital, deepen client relationships, increase flows of funds, and diversify product offerings.

Introduction:
Arlen Oransky, SVP, Chief Membership and Programs Officer, MMI

Moderator:
Andrew D. Beer, Founder and Managing Member, Beachhead Capital

Presenters:
Jerry Pascucci, Managing Director, Head of Alternative Investments, Wealth Management Americas, UBS Financial Services
Robert Martorana, Director of Research, Dover Financial Research

Duration:
50 minutes