Half of financial advisers are looking to increase their allocation to private assets over the next 12 months, according to the latest FT Adviser poll for Talking Point.
Advisers were asked: Does the changing regulatory outlook make it more likely you will increase exposure to private assets over the next year?
Half said yes, 30 per cent said no, while 20 per cent were unsure.
An increasing number of managers are launching forays into these asset classes for the first time, as the search for portfolio diversification continues and regulation is set to make private assets available to more investors.
Meanwhile, the Financial Conduct Authority is also turning its focus to private assets; looking to conduct a review of the disciplines and governance around private market valuations.
Asked what their investment approach in the private assets market is, Wes Wilkes, chief executive of Net-Worth NTWRK, said: “This is really where regulatory intervention actually helps. Assessing the current state of private assets, valuations in particular, should encourage stronger product and vehicle development and make the asset class more convenient to allocate to.
Philip Dragoumis, director and owner of Thera Wealth Management, said: “For us, private assets should only be really considered (and then for a small allocation) if clients have net investable assets of above £10mn pounds.
"We are also wary of and tend to avoid venture capital trust and Enterprise Investment Scheme products due to their lack of global diversification, as they are predominantly UK based and their valuations are not always transparent or realistic.
“It seems the wealth market agrees with us, as the take up this year of these products is lower than anticipated.”
ima.jacksonobot@ft.com
