Fidelity Institutional announced Monday that it is leveraging relationships with Morningstar, Goldman Sachs and CAIS to bring a platform of alternative investments to advisors.
The new platform will provide access to products like hedge funds, private equity funds and '40 Act mutual funds. It will also provide a list of alternative investment funds from third-party sponsors with reduced custody fees.
Through its relationship with Morningstar, Fidelity will provide advisors with research and education on alternative products. The education center will offer analyst insights on how to incorporate alternatives in a client's portfolio and when is the best time to do so. Market research and trends are also available, as is a list of alternative mutual funds, generated by Morningstar Associates.
Goldman Sachs and CAIS will help offer products and due diligence. CAIS will provide access to hedge funds with reduced minimums, portfolio construction tools and an automated electronic subscription process. Due diligence and monitoring will be provided by Mercer.
Goldman Sachs will also offer access to hedge funds through portfolios of external hedge fund and private equity managers utilizing various alternatives strategies. It will also offer thought leadership on the platform.
Last year, CAIS launched what it calls the first global alternatives exchange, known as CAIS-X, which provides advisors with a platform for conducting due diligence, analysis and trading of alternative investments. The idea is that it will bring private vehicles into the public (advisor) space. With greater interest among advisors of alternatives in recent years, the value is readily apparent; something to which their 10% monthly growth can attest.
Earlier this year, CAIS announced the launch of its capital markets product offering, which includes access to IPO and follow-on offerings as well as structured products. Fidelity and CAIS will introduce the strategic alliance with a nationwide road show and CAIS will also sponsor Fidelity's upcoming 2014 Alternative Investment Forums.
