Gary Gallagher, Head of Fidelity Institutional Wealth Advisory and Portfolio Solutions, joined Keith Black, Managing Director of RIA Channel, at the CAIS Summit to discuss the products and services Fidelity offers advisors to build portfolios including alternative investments.
Fidelity Investments provides access to alternative investments for both wealth managers and direct investors. This access can be through Fidelity’s asset management offerings or through an alternative investment platform with access to third party strategies.
Fidelity Investments has $80 billion in alternative investment assets under administration (AUA), which has doubled in the last several years. Strategies offered include private equity, private credit, real estate, and hedging strategies. While real estate has historically been a popular strategy, investors have recently had more interest in private equity and private credit and a growing interest in infrastructure investments.
The platform provides access to education, proprietary due diligence, and services to assist advisors in alternative investment transactions. Fidelity assists advisors in the identification of alternative investment strategies and managers, while offering technology to facilitate transactions and monitoring of the selected investments. This includes digitization of a straight-through process from account opening to alternative investment transactions.
Fidelity’s thought leadership seeks to help advisors increase their IQ regarding the what, why, and how of alternative investments. The most recent white paper discusses the incorporation of alternative investments into a 60/40 portfolio, including liquidity, allocations, rebalancing, and vehicle types. Advisors have access to a team of alternative investment specialists who can provide information on the products and services offered by Fidelity.
Resources:
Alternative Investments and their Roles in Multi-Asset Class Portfolios