Through this new platform, financial advisers and family office professionals will now have access to a variety of alternative investment products. This includes hedge funds, private equity funds and certain mutual funds. Fidelity’s platform will also provide access to research and third-party due diligence reports through strategic alliances with firms such as CAIS, Goldman Sachs Asset Management (GSAM) and Morningstar.
In addition, through Fidelity’s Alternative Investments Network, financial advisers and family office professionals will have access to a list of alternative investment funds from third-party sponsors with reduced custody fees.
“This platform was built on insights from our clients regarding the challenges they face incorporating alternative investments into their clients’ portfolios,” said Mark Haggerty, head of Fidelity Institutional’s product group.
In addition to the education provided on the platform:
- Fidelity will conduct several in-person alternative investment forums to keep clients up-to-date on the changing landscape of alternative investments.
- CAIS will provide access to a centralized and diverse menu of leading hedge funds at reduced minimums, independent third-party due diligence and monitoring provided by Mercer, portfolio construction tools and an automated electronic subscription process.
- GSAM’s Alternative Investments & Manager Selection (AIMS) Group will provide access to portfolios of leading external hedge fund and private equity managers across various alternative investment strategies, utilizing its rigorous process of selecting managers, constructing portfolios and managing risk. Additionally, GSAM will offer alternative investment thought leadership through the platform.
- Fidelity will offer an adviser education center powered by Morningstar Inc. and provide analyst insights on how and when advisers and their clients might want to use alternatives in their portfolios, comprehensive market research to help assess alternative asset categories and information on market trends. Morningstar Associates, a registered investment adviser and wholly owned subsidiary of Morningstar Inc., will provide a select list of alternative mutual funds to advisers.
Fidelity Institutional, a division of Fidelity Investments, provides clearing, custody and investment management products to registered investment advisers, broker-dealers, family offices and banks.