Financial advisors are more likely to recommend alternative investments in today's low-interest environment, according to a survey conducted in June by OppenheimerFunds, Inc. The survey looked at the investment challenges and opportunities advisors see when managing portfolios for their increasingly risk adverse clients.

When asked which investments they were most likely to recommend, most answered nontraditional approaches to generating income. Eighty-four percent of advisors are more likely to recommend dividend-paying equities and 76 percent of advisors cited a willingness to recommend emerging market bonds or related bond funds over other asset classes.

"Ongoing market volatility, low U.S. interest rates and the many challenges surrounding retirement, like rising healthcare costs and longer life expectancy, mean advisors are facing significant challenges positioning their clients' portfolios for long-term success," said Lori Heinel, OppenheimerFunds' chief investment strategist. "I believe the traditional asset allocation model will be unable to generate the real returns needed to sustain a quality standard of living. In addition to seeking yield,  today's investors need to look across the globe to find the best opportunities for growth while educating their clients about how certain opportunities can potentially reduce risk in their portfolios, a sentiment we see reflected in our survey data."