Cetera has introduced its first Alternative Investments allocation model for advisors seeking to offer alternative investments to accredited-investor clients.
The Cetera Blended Alternatives Model – Moderate features six alternative funds that provide exposure to private equity, private credit, and private real estate. This model was vetted by Cetera’s Due Diligence and Investment Management teams in collaboration with iCapital.
Designed for simplicity, the model provides a curated selection of institutional-quality managers, allowing advisors to integrate alternative investments into their clients’ portfolios efficiently. And Cetera believes that combining traditional investments with alternatives can enhance portfolio diversification and return potential, all without adding complexity to advisors’ schedules.
The Alternative Investments Allocation Models strategy was developed with the support of Cetera Investment Management and iCapital, which provided valuable insights on asset allocation and fund selection. iCapital will continue to offer ongoing monitoring and reporting for the Cetera Blended Alternatives Model.
KEY QUOTES:
“At Cetera, we empower advisors to deliver institutional-quality exposure to alternative investments with confidence and ease. We see Cetera as the first independent broker-dealer to introduce this kind of alternatives model and we believe it will create significant value for our advisors. We have a high degree of confidence in our alternative investments concepts and approach, thanks to the deep research and due diligence conducted by our Cetera Investment Management team. Their deep knowledge of alternative investments landscape led to a data-driven decisions about the fund managers we selected.”
Christian Mitchell, President of Cetera Solutions
“Especially for high-net-worth clients, financial advisors should have access to alternative investments as another tool within their overall financial planning strategy because alternatives can help dampen the effects market volatility has on a client’s investment portfolio. There’s been tremendous change in the alternative investments marketplace in the past 10 years, spurring greater client awareness of and demand for alternative investments, which have become a more mainstream tool for advisors constructing modern client portfolios.”
Matt Fries, Head of Investment Products & Partner Solutions for Cetera
“Model portfolios are a critical in how we meet advisors where they are. Advisors are seeking a portfolio level solution to incorporate alternative investments in their overall portfolio. By embedding alternatives into familiar portfolio construction frameworks, we empower advisors to deliver diversified, outcome-oriented solutions without compromising on efficiency or customization. This is about simplifying access to alternatives and enabling scale.”
Kunal Shah, Managing Director and Head of Private Markets Research and Model Portfolios at iCapital
