Franklin Templeton, Vanguard, Ellevest, NB Private Wealth all contribute important ideas on not just the “why” but the “how” of helping clients make use of alts

The Chartered Alternative Investment Analyst (CAIA) Association, the global professional body for the alternative investment industry, is today releasing its newest report: Crossing the Threshold: Mapping a Journey Towards Alternative Investments in Wealth Management.

This report serves as a roadmap for professionals across asset and wealth management to thoughtfully move into what CAIA is calling a “second phase of democratization” of alternative investments, which began post-global financial crisis. Fifteen years removed from the industry’s experimentation with “liquid alternatives,” an even broader swath of private market products have been made available to a wide array of investors, only this time with improved technology and access points.

As the “second phase” unfolds, wealth management professionals have an improved understanding of the "why" behind alternatives, yet despite the improved access, it is the practical implementation, or the "how," that frequently remains underdeveloped.

Contributors to this valuable report include the expertise of CAIA leadership and four highly respected senior professionals across the wealth management industry, including:

  • Sandy Kaul, senior vice president and head of industry advisory services, Franklin Templeton, walks readers through the megatrends that have driven so much of the alternative investment industry’s efforts and eventual entrance into wealth management over the past few decades.
  • Fran Kinniry, CFA, principal and head of the Vanguard Advisor Research Center, discusses the most important considerations a wealth professional needs to consider before beginning the journey towards allocating to alternatives.
  • Sylvia Kwan, PhD, CAIA, CFA, chief investment officer, Ellevest, shares practical guidance on how advisors can align different alternative investments to client goals and objectives.
  • Shannon Saccocia, CFA, CIMA, chief investment officer, NB Private Wealth, highlights key implementation objectives and the importance of setting specific investor expectations for the long-term.

The insights and guidance provided by these industry leaders are presented as a navigation tool for this transformative period in wealth management. Their combined expertise aims to equip professionals with an understanding of the nuances of alternative investments, when they are appropriate for clients, and how to integrate them effectively.

“Over the past decade, there has been a collective effort across wealth and asset management firms to broaden access to alternative investments for individual clients. Yet there’s still a lot of room for growth when you look at current average allocations relative to those found in institutional portfolios.” said Aaron Filbeck, CAIA, CFA, CFP®, CIPM, FDP, Managing Director, Head of UniFi by CAIA™, CAIA Association. “While there’s always work to be done on ‘the why’ behind including or not including alternatives, many firms are looking for guidance on the ‘the how.’ Implementation is a journey, and each contributor provides thought-provoking insights, important questions to ask, and approaches to help navigate that path.”

Crossing the Threshold continues CAIA’s core mission of promoting education, transparency, and putting the investor first. The report is the latest addition to a fast-growing menu of educational options geared towards professionals in the wealth channel, including the many offerings that now make up the UniFi by CAIA™ platform, with its flagship Fundamentals of Alternative Investments certificate program and microcredentials focused on digital assets, private debt, and real estate, respectively.

The full Crossing the Threshold report can be found here.

About CAIA Association

The CAIA Association, a global professional body, pioneers a new era in investment management. At the forefront of the shifting of alternative investment asset classes from 'alternative' to mainstream, CAIA embraces diverse expertise and interdisciplinary knowledge essential for responsible capital allocation and client stewardship. A Member-driven organization representing professionals in more than 100 countries, the organization seeks to prepare investors for a dynamic future, disrupting traditions, creating opportunities, and fostering long-term sustainability. To learn more about the CAIA Association and how to become part of a professional network that is shaping the future of investing, please visit https://caia.org/.

Media contact: Chase Kosinski Craft & Capital chase@craftandcapital.com