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Fidelity Investments on Tuesday announced two suites of turnkey model portfolios and an expanded set of educational resources to better support wealth management firms seeking to incorporate alternative investments in their practices.
The turnkey model portfolio suites are designed to provide exposure to private markets, offering an off-the-shelf solution to eligible firms. They blend active and passive funds from Fidelity and third parties and require a $100,000 minimum investment, according to Fidelity's website.
Fidelity Model Portfolios with Private Markets, for I and Z share classes, and Fidelity Model Portfolios with Private Markets — ETF Focused are multi-asset class, open-architecture model portfolios that bring diversified exposure across private equity, private credit and private real estate. They are available to eligible RIAs and broker-dealers via Envestnet, the wealthtech firm, and will be available on additional platforms in the coming months.
The new turnkey model suites follow last year's launch of Fidelity's custom model portfolios with alternatives, the firm noted, adding that 46% of advisors are interested in a model portfolio offering both traditional and alternative investments.
"Wealth managers recognize the potential for private markets to differentiate their practice and diversify portfolios, but often struggle with the time needed for research and due diligence," said Amanda Robinson, who heads Wealth Advisory Managed Solutions Specialist Distribution at Fidelity. "These new additions to our suite of turnkey models provides advisors the tools they need to offer private markets exposure at scale."
Fidelity also introduced Alternative Navigator, a continuing education-accredited learning program to help advisors build and apply alternative investments knowledge. The module-based program includes Fidelity-led sessions from its portfolio construction and alternative investment strategists, CE-approved tutorials, advisor and client guides and curated resources.
"As interest in alternative investments grows, so does the need for education," said Michael Scarsciotti, head of Investment Specialists at Fidelity. "This program helps advisors deepen their knowledge of this asset class to meet clients' evolving needs and add value to their practices."
The first two modules are available now, and the third is scheduled for release soon.
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