An overwhelming majority of financial advisors surveyed at the CAIS Alternative Investment Summit last month said they will increase their use of alternatives in their clients’ portfolios over the next two years, CAIS announced today.

The ongoing market volatility and tightening monetary policy by central banks are making alternatives more popular, according to CAIS, an alternative investment platform for financial advisors. Eighty-eight percent of advisors said they intend to increase allocations to alternative asset classes over the next two years. The survey by CAIS and Mercer, included 198 respondents, 97 of whom identified themselves as financial advisors.

“Investors are increasingly turning to alternative investments to seek diversification, capital preservation, and uncorrelated returns,” CAIS said in announcing the survey results. Fifty-three percent of the financial advisors said they are considering raising their alternative asset allocations to more than 15% over the next two years, while another 21% estimated their alternative asset allocations will exceed 25%.

“We are increasingly seeing advisors target a three-dimensional portfolio that more closely resembles a 50/30/20 model across stocks, bonds and alts,” Matt Brown, founder and CEO of CAIS, said in a statement.

Institutional investors have historically allocated between 30% and 50% of assets to alternatives, said CAIS. Advisors said investors’ cited a lack of liquidity, the high cost of administration, and concerns about due diligence as areas of concern. Advisor and wealth managers said a lack of knowledge about alternatives was a drawback for them.

The alternatives most cited by the advisors as attractive investments were private equity, private credit and real assets.

“The key is to provide independent financial advisors with the same research and resources currently available to larger institutions, especially when it comes to enhancing portfolio allocations and mitigating risk through private market opportunities,” Gregg Sommer, partner and U.S. Financial Intermediaries Leader at Mercer, an asset manager based in New York City, said in a statement.