Accounting for more than one-third of the total allocations to alternatives, managed futures proved to be the most popular nontraditional investment strategy. The use of option-writing strategies also increased in the third quarter, according to Natixis, while the use of multi-alternatives and long/short equity strategies declined.
Despite the noted diversification trend, Natixis also found that exposure to U.S. equities increased to 80 percent of total equity allocations, the highest level ever recorded, despite a rally in global and emerging market equities in the third quarter.
For it’s most recent Portfolio Clarity Trends Report, Natixis tracked the asset allocations and performance of 306 moderate model portfolios submitted by U.S. financial advisors between April 1 and Sept. 30, 2016. These portfolios are among a broader sample of 2,377 portfolios that were submitted in the three-year period from January 2013 through September 2016.