With high-net-worth (HNW) investors representing the largest market for alternative assets, research from Praemium and CoreData underscores why this is a compelling opportunity for advisers.

The research report, commissioned by Praemium from CoreData, surveyed 150 advisers with a HNW focus to gauge their use of alternative investments.

Over the past year, there has been a 23 per cent rise in funds allocated to alternatives as the asset class approaches $6 billion in funds under administration (FUA).

More than 17 per cent of HNW investors are now diversifying their portfolios with alternative assets, according to Praemium. This figure is higher than any other investor segment, with just 10 per cent of core affluent investors and 6 per cent of mass affluent investors holding alternatives.