The AltExchange team had the pleasure of attending the 2024 Future Proof Festival in Huntington Beach, California last week. We had an amazing time learning from and meeting all the fantastic RIAs, financial advisors, and fintech attendees. Among many hot topics, we’re breaking it down into a few simple highlights that we expect to continue trending well into this year.
AltExchange’s Chief Revenue Officer, Roberto Montesi, shares his top three takeaways from this year’s Future Proof 2024 Conference that wealth professionals need to know about.
1. Interest in Alternative Assets Continues to Grow
It was inspiring to see a significant number of sponsors and asset managers focused on raising awareness around alternative assets. This reinforces the trend that this segment is not just growing, but thriving!
Recent studies show that institutional investors are increasingly allocating to alternative investments, with over 52% of portfolio managers planning to increase their exposure to alternatives by the end of 2025, according to KKR.
From private equity and venture capital to real estate and hedge funds, alternatives offer portfolio diversification, risk mitigation, and opportunities for higher returns in a low-yield environment. This aligns perfectly with what we witnessed at Future Proof, as asset managers presented solutions designed to cater to the growing demand for these non-traditional asset classes.
2. Portfolio Managers Are Innovating for the Future
Future Proof brought together all the major portfolio managers, and their presence was marked by innovative new features and updates that aim to redefine how advisors manage client assets. From advanced data analytics to AI-driven portfolio rebalancing, the tools showcased were designed to streamline decision-making, improve risk management, and enhance client communication.
These innovations are particularly exciting as they respond to the evolving needs of wealth managers and multi-family offices. As clients’ expectations for transparency and personalization grow, portfolio managers are rolling out tools that provide more granular insights into both traditional and alternative assets. According to recent studies, nearly 70% of advisors believe that adopting these new technologies will be crucial in retaining high-net-worth clients over the next five years. The event demonstrated that the future of wealth management is both digital and client-centric, with a focus on empowering advisors to provide comprehensive, real-time insights.
3. The Role of Advisors Is Expanding
One of the most compelling highlights of Future Proof 2024 was the dialogue around the evolving role of financial advisors. We connected with numerous firms that are actively expanding their teams and investing in new tools to enhance client service. There’s a growing demand for advisors who can deliver a holistic view of their clients’ portfolios, encompassing everything from traditional investments to passion assets, such as art and collectibles, as well as alternative assets.
High-net-worth individuals and families are increasingly seeking advisors who offer deep insights into complex, multi-asset portfolios. According to a study by Capgemini, 73% of wealthy clients expect their financial advisors to integrate data from various sources to provide a unified view of their wealth. This demand is pushing firms to adopt advanced tools that not only simplify asset reporting but also offer insights into performance, risk, and allocation across all asset classes, including alternatives.
At AltExchange, we’re excited to align with this trend by embracing the emerging 30-30-40 model, which divides portfolios into 30% traditional assets, 30% liquid alternatives, and 40% private investments—a framework increasingly favored by advisors managing diverse, high-net-worth portfolios.
Final Takeaways…
As the wealth management landscape continues to evolve, it’s clear that the advisor-client relationship will become even more central to the investment process. Advisors who embrace innovative tools and adopt a client-centric approach will be well-positioned to succeed in this new era of wealth management.
We built AltExchange to help advisors better serve clients by meeting the growing demand for alts with one simple management and reporting solution to provide a holistic, transparent view of clients’ alts portfolios.
We hope you enjoyed this round-up of Future Proof 2024. If we didn’t get to meet you there, we’d love to set up a time to talk alts for your firm.
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