Wealthy Investors Lift Alternatives to 60% of Portfolios as Inflation and Volatility Spur Diversification
Updated
Updated · CNBC · Nov 12
Wealthy Investors Lift Alternatives to 60% of Portfolios as Inflation and Volatility Spur Diversification
3 articles · Updated · CNBC · Nov 12
Summary
Alternative assets now make up 60% of single-family office portfolios, overtaking traditional holdings at 41%, as wealthy investors seek more protection from volatile markets and stubborn inflation.
JPMorgan said its Asia-Pacific private-wealth alternative assets jumped 40% in the past 12 months, while Citi’s 2026 survey of 351 family offices found inflation remained their top concern.
Hedge funds and private credit are drawing strong interest because they offer less equity-market dependence and more contractual income, while infrastructure is benefiting from AI-driven demand for data centers and power networks.
Public equities still posted the strongest net increase in allocations in Citi’s survey, suggesting investors are adding alternatives with fresh capital and excess cash rather than making a wholesale exit from stocks and bonds.
Risks remain: private assets can lock up money for years, valuations may lag market stress, semi-liquid funds can curb withdrawals, and overlapping bets can leave portfolios more concentrated than they appear.