Refinitiv's Dewi John: There is little to no 'alternative'

'Investors, clearly, remain unconvinced'

I saw a conference presentation recently on how underexposed the wealth management industry was to alternative investment products, relative to the broad market.

Despite this, alternatives have suffered the largest outflows by asset class, year to date — or £2.3bn to the end of October, to be more precise. The next largest redemptions are at £1.3bn, for real estate. It is an interesting trend, as many pundits have tipped alternatives as an attractive bolt-hole for investors in increasingly febrile and unpredictable markets. Investors, clearly, remain unconvinced. Cost might have something to do with it. Investors are becoming increasingly focused on what they pay, and, in aggregate, alternatives are the most expensive asset class, calcul...