High Net Worth Women Believe Alternatives Will Become a Core Investment Holding over Next Few Years, According to Mainstay Investments Study

NEW YORK--()--High net worth women are turning to non-traditional investments as they look to generate income, drive capital growth, and achieve portfolio diversification. These are among the latest findings from “Investing Outside the Box”, a study on trends in non-traditional investing from MainStay Investments, a New York Life company and Barron’s Top Fund Family*. The study was conducted by Harris Poll among a nationally representative sample of more than 800 high net worth investors ages 40-65.

“While all investors are growing more aware of the value of non-traditional investments, high net worth women are especially interested in the benefits alternatives offer,” said Stephen Fisher, president of MainStay Investments. “For advisors, this trend presents a tremendous opportunity to help high net worth women achieve their investment goals while properly diversifying their portfolios.”

Key Findings

High Net Worth (HNW) Women Becoming More Favorable Toward Alternatives

  • Of HNW women and men already invested in alternatives, women have a higher allocation to non-traditional investments than men (27% vs. 20%).
  • More than half of the women surveyed (55%) said that over the past year they have increased their allocations to alternative investments, and more than a quarter (27%) of women say that within the next five years they plan to further add to their allocation.
  • More women than men see alternatives as a “mainstream” option and expect alternatives to become a core investment holding over the next 5-10 years (60% vs. 47%).
  • A majority of HNW women invested in alternatives have had a positive experience (58%) and would recommend alternatives to their peers (89%).

Alternatives Help Women Achieve Their Long-Term Goals

  • Three in five (59%) HNW women, when thinking about their investment portfolio, rank the achievement of a goal, such as retirement, as very important.
  • 68% of women agree that as the economy continues to evolve, alternative investments may offer the best opportunity to diversify and meet their long term objectives.
  • When considering making an investment in alternatives, the top considerations of HNW women include the degree of risk an investment has to offer (76%), its ability to generate return potential (72%), and past performance (70%).

They Value Professional Advice – and Act on It

  • Most women look to advisors for investment ideas regarding non-traditional investments (65% vs. men at 58%).
  • 41% of women who discussed alternative investments with an advisor are invested in alternatives.
  • When working with a financial advisor to understand a new opportunity such as alternative investments, HNW women appreciate information about potential risks (69%), a description of how these investments work (66%), and charts on how alternatives can impact returns (52%).

“This research suggests that high net worth women should be approached as goal-oriented, savvy investors with a long-term and growing interest in alternative investments,” said Matthew Leung, head of channel marketing strategies at MainStay Investments. “There’s clearly a growing eagerness among high net worth women to explore the role of alternative investments in their portfolios, which translates into an opportunity for MainStay and the financial advisors we partner with.”

For more information about MainStay’s study “Investing Outside the Box” please visit: http://www.mainstayinvestments.com/nontraditional.

Methodology

New York Life/ MainStay Investments commissioned Harris Poll to conduct an online survey of 806 HNW investors from October 24th to November 11th, 2013. All respondents were U.S. residents, aged 40-65 with at least $1 million in investable assets (not including the value of their home).

About MainStay Investments

With more than $105 billion in assets under management as of June 30, 2014 across retail mutual funds and variable product sub-accounts, MainStay Investments is the mutual fund distribution arm of New York Life. MainStay provides financial advisors access to a powerful mix of autonomous, institutional investment managers, delivered by people who understand the needs of today's financial advisor. As an indirect subsidiary of New York Life Insurance Company, a Fortune 100 company founded in 1845, MainStay is owned by the largest mutual life insurance company in the United States** and one of the largest life insurers in the world. Please visit MainStay’s website at www.mainstayinvestments.com for more information.

About Nielsen & The Harris Poll

On February 3, 2014, Nielsen acquired Harris Interactive and The Harris Poll. Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence and mobile measurement. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, visit www.nielsen.com.

*Barron’s, February 10, 2014. Overall, MainStay Funds ranked number 28 for the one-year period, 22 for the five-year period, and 7 for the 10-year period ended December 31, 2013, out of 64, 55, and 48 fund families, respectively. MainStay ranked number 56 for the one-year period, 20 for the five-year period, and 1 for the 10-year period ended December 31, 2012, out of 62, 53, and 46 fund families, respectively. MainStay ranked number three for the 10-year period in 2009, 2010, and 2011 from among 48, 46, and 45 fund families, respectively. MainStay ranked number six from among 48 fund families for the 10-year period in 2008. Past performance is no guarantee of future results, which will vary.

** Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, June 16, 2014. See http://fortune.com/fortune500/.

For more information about MainStay Funds®, call 800-MAINSTAY (624-6782) for a prospectus or summary prospectus. Investors are asked to consider the investment objectives, risks, and charges and expenses of the investment carefully before investing. The prospectus or summary prospectus contains this and other information about the investment company. Please read the prospectus or summary prospectus carefully before investing.

The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.

MainStay Investments® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services.

Contacts

New York Life Insurance Company
Allison Scott, (212) 576-4517
Allison_scott@newyorklife.com
or
New York Life Insurance Company
Konstantin Shishkin, (212) 576-4520
Konstantin_shishkin@newyorklife.com

Contacts

New York Life Insurance Company
Allison Scott, (212) 576-4517
Allison_scott@newyorklife.com
or
New York Life Insurance Company
Konstantin Shishkin, (212) 576-4520
Konstantin_shishkin@newyorklife.com