Cetera discloses models for distributing funds into alternative investment categories
In a significant move towards enhancing portfolio diversification and return potential, Cetera, a leading investment management firm, has announced the launch of the Cetera Blended Alternatives Model - Moderate. This innovative model portfolio is specifically designed for accredited investors and financial advisors seeking to integrate alternative investments into client portfolios.
The model, developed in partnership with iCapital, an alternative investment marketplace, offers a curated selection of six alternative funds with exposure across private equity, private credit, and private real estate. The funds have been meticulously vetted by Cetera's Due Diligence and Investment Management teams, ensuring a high standard of quality and performance.
The Cetera Blended Alternatives Model - Moderate aims to simplify access to alternative investments for advisors. Instead of the traditional approach of researching and selecting individual funds, the model provides a pre-constructed, professionally vetted portfolio, reducing complexity and time demands on busy advisors.
The model offers several key benefits. It provides diversification with enhanced returns potential, aiming to deliver the diversification benefits and return enhancement possibilities that alternatives typically bring, while being integrated into a single allocation framework. The model is also turnkey, available through Cetera’s My Advice Architect platform, allowing advisors to easily incorporate this pre-built alternative allocation into existing client portfolios without the need to manage each alternative holding separately.
Christian Mitchell, President of Cetera Solutions, emphasizes the importance of financial advisors having access to alternative investments for high-net-worth clients. According to Mitchell, alternative investments can help mitigate market volatility's impact on a client's investment portfolio.
Matt Fries, Head of Investment Products & Partner Solutions for Cetera, highlights the importance of model portfolios in incorporating alternative investments efficiently. Fries believes that embedding alternatives into familiar portfolio construction frameworks simplifies access to alternatives and enables scale.
The introduction of the Cetera Blended Alternatives Model is part of a broader trend of alternative investments becoming more mainstream in portfolio construction. Kunal Shah, Managing Director and Head of Private Markets Research and Model Portfolios at iCapital, is involved in the development of these model portfolios. iCapital will continue to offer ongoing monitoring and reporting for the Cetera Blended Alternatives Model.
Cetera's CEO expressed confidence in the alternative investments concepts and approach, citing deep research and due diligence by the Cetera Investment Management team. The launch of the Cetera Blended Alternatives Model is a testament to Cetera's commitment to providing innovative, efficient, and high-quality investment solutions for its clients and partners.
[1] Cetera Press Release, "Cetera Introduces First Alternative Investments Allocation Model for Advisors," [Date], [Link] [2] iCapital Press Release, "iCapital and Cetera Partner to Offer Alternative Investment Solutions to Advisors and Their Clients," [Date], [Link] [3] Matt Fries, "Incorporating Alternative Investments Efficiently: The Role of Model Portfolios," [Date], [Link] [4] Christian Mitchell, "The Importance of Alternative Investments for High-Net-Worth Clients," [Date], [Link]
- The Cetera Blended Alternatives Model, designed for accredited investors and financial advisors, integrates private equity, private credit, and private real estate funds, offering a diversified portfolio to help mitigate market volatility's impact.
- In partnership with iCapital, Cetera's model portfolio, aimed at simplifying access to alternative investments, is an efficient solution for busy advisors seeking to deliver enhanced returns potential through finance and investing strategies in the business sector.
