Nearly half (48%) of UK advisers say their knowledge of what is on offer in the alternative asset classes was either "poor" or "average", according to a new survey published this week.
The telephone-based independent survey commissioned by racehorse investment specialists JR Bloodstock Investments, said that of those IFAs polled, just 7% said they considered their knowledge of available alternative investments to be "excellent".
The survey, which comprised interviews with IFAs from across Great Britain and Northern Ireland between August and October 2019, revealed just less than one in five (19%) of advisers have actively advised on bloodstock investments. Nearly all of the respondents (96.3%) said their clients had allocated a portion of their portfolio to higher risk assets but, four fifths of UK financial advisers admitted to overlooking returns from bloodstock investments.
Jamie Railton, managing director of JR Bloodstock Investment, said the asset class offers a way for clients to diversify their portfolio. "Bloodstock investments are uncorrelated to traditional asset classes and offer the potential for clients to make double digit returns on assets earmarked for higher risk investments," he said.
With a minimum investment of £25,000, JR Bloodstock Investments invest in this asset class via in a mix of thoroughbred foals rather than just an expensive portfolio of high-end horses, which, it claims, allows investors to diversity the risk.