Alternative Asset Management Cannot Be Ignored

Alex Butler

September 14, 2022

Alternative asset management sat around $4.08 trillion in AUM at the end of 2015. At end of 2021, alternatives hit $8.90 trillion in AUM, amounting to a compound annual growth rate of 13.9%. But, the future projections are even bigger for the industry. Experts are projecting AUM for alternatives to hit $23.21 trillion by the end of 2026.

But why has there been such growth in the sector? Investors are more and more hunting for alternative yields and non-correlated assets. These assets also may be viewed as a hedge against inflation. Over the years, alternatives are becoming core to asset allocation for many investors globally. With only a small percentage of portfolio allocation attributed to alternatives, the industry has much more room to grow.

The BlueStar^® Top 10 US Listed Alternative Asset Managers Index (BUALT) tracks the performance of the 10 largest and most liquid US-listed companies in the Alternative Asset Managers Industry. This index provides a pure play approach to the industry, including only companies that generate at least 75% of their revenue or operating assets from the management or investment in alternative assets.