Fidelity's alts curriculum primes advisors for the private-market push
A CE-accredited program gives advisors the language to place private-market positions in client portfolios without hiding the risks.
Fidelity has rolled out a multi-part education program for advisors. CE-accredited modules pair with in-person sessions led by the firm's alternative-investing specialists. The curriculum covers private markets, hedge funds, and portfolio construction, according to Fidelity Institutional, and the case studies plus client-communication topics aim to move the work from theory to practical use.
The disclosure language reads like a training manual for the awkward conversation. Alternative investments may be relatively illiquid, difficult to value, and costlier to trade, Fidelity states. Historical risk and return data are limited. An advisor who finishes the work should be able to argue for alternative investments and against them in the same breath.
The $2 trillion syllabus
The program lands as Cerulli projects advisory private-market assets will nearly double. The forecast is a roughly $2 trillion increase, with interval funds and model portfolios at the center of RIA allocation. Fidelity's manager research unit made a similar argument earlier this month, publishing a paper that disciplined fund selection adds value.
More alternative assets in client portfolios likely means more custody and reporting flowing through Fidelity's platform, whatever the underlying product. The education push is the slow way to build that relationship, but it is the durable one: an advisor who has sat through the case studies and client-communication modules is better equipped to explain a private credit position when a client calls after a bad month.