FPA rolls out welcome mat for alternative investments

investmentnews.com:

The Financial Planning Association, recognizing the growing appreciation of alternative investment strategies, has partnered with theChartered Alternative Investment Analyst Association to provide FPA members with increased access to educational programs and materials related to alternatives.

The partnership gives all FPA members discounted access to UniFi by CAIA, an online series of educational offerings geared toward the needs of clients and advisers regarding alternative investments.

The partnership is in line with the growing trend across financial services of migrating toward alternatives in the wake of the historic 2022 market environment that saw stocks and bonds decline in tandem, leading to increased questioning of the traditional portfolio model of 60% stocks and 40% bonds.

While most financial advisors remain solid proponents of long-term investing, the worst return in more than 60 years for the 60/40 portfolio has sent a lot of advisors scrambling to achieve better diversification.

According to the FPA’s most recent Trends in Investing Survey report, advisors are increasingly embracing various alternatives on behalf of their clients.

Asked the investments to which they plan to increase allocations over the next 12 months, some of the biggest percentage increases over last year included private equity, structured products and alternatives in general.

The report showed 11.5% of advisors plan to increase allocations to private equity over the next year, compared to 6.2% who said that a year ago. Structured products increased to 11.5% from 5.6%, and alternatives in general increased to 11.5% from 6.8% a year ago.

Regarding the alternative strategies they are currently recommending for clients, 29% of advisors