Are you gaining from rising interest in alternative investments?

Survey suggests wealth managers may be missing out

Are you gaining from rising interest in alternative investments?
Steve Randall
More institutional investors are showing interest in alternative investments but wealth managers may be missing out on the wave due to operational challenges.

The report from investment management, processing and operation solutions firm SEI, highlights a disconnect between investors and alternative investment managers.

The report found that evaluation of a manager’s investment acumen is critical but investors are also increasingly interested in the manager’s operational capabilities.

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"We are pleased to see a continued demand for institutional investment products," said Jim Cass, Senior Vice President of SEI's Investment Manager Services division. "As the industry becomes more sophisticated and complex, the winners will be those managers who can close the gaps between investors' expectations and current reality by bolstering their operational capabilities, while also supporting their portfolio management expertise with a streamlined and technologically-supported investor experience."

The key areas that need to be addressed include transparency – 67% of managers believe that existing levels are sufficient but only 25% of investors agreed.

Fees are also a big deal for clients with 90% of investors saying they should be able to negotiate fees with managers but while this happens with 73% of investors with more than U$25 billion in assets, the share drops to 29% for those with less than $1 billion.

The entire report is available from