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We’re only two months into 2024 and already seeing some important and interesting conversations on alternative assets from key players.
Here’s what’s happening.
This January, pivotal discussions and reports from leading institutions like BlackRock and JP Morgan have already sparked discussion around the role of alternatives and tokenisation in the investment landscape of the future.
BlackRock's Perspective
BlackRock's perspective on alternative assets, particularly through Larry Fink's insights, emphasises the transformative potential of Exchange Traded Funds (ETFs).
His interview with David Westin highlighted the growing importance of ETFs in shaping the future of product offerings in the alternative asset investment sector. Larry Fink, chairman and chief executive, said at the New York Times' DealBook event last year: “I believe the next generation for markets, the next generation for securities will be tokenization of securities. Distributed ledgers will bring instantaneous settlement and change the whole ecosystem.”
JP Morgan's Outlook on Alternative Investments
In its 2024 outlook paper, JP Morgan underscores their belief in the resilience and potential of alternative investments.
The report highlights three key themes: Displacement, Democratisation, and Diversification. These themes capture the essence of the current investment climate, marked by a shift in private market activity, widening access to alternative investments, and the massive focus on strategies for robust diversification in the face of wider market fluctuations and uncertainties.
The report suggests that a slowdown in private market activity throughout 2023 has created a ripple effect, leading to a revaluation of alternative assets and potentially marking 2024 as a year of good investment opportunities, especially if the interest-rate environment stabilises or begins to recede.
Wealth Management and Alternative Assets
The discourse around alternative assets within wealth management itself is vibrant too, reflecting on both the challenges and opportunities of the present market.
Recent discussions focus on how much more clients expect from wealth management products and services now than they ever did before. Increasing expectation and demand from clients in turn increases demand on wealth managers, banks, and investment platforms.
It’s a lot of pressure for sure, but also a hot bed for genuine innovation and transformation.
The ongoing rise in alternative asset investing, digital asset investing, and hyper-personalisation are highlighted as core driving forces in predictions for 2024.
What’s Next?
We find it truly energising to see so much dialogue around alternative assets unfold in just the first month of the year.
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