Fidelity Investments will be adding alternative investments to its custom model portfolio, which will be available for its broker-dealer and registered investment advisors. 

Fidelity’s Custom Model Portfolios will allow advisors to incorporate private market investments with investment options. Fidelity will use interval funds, tender offer funds, ETFs, and mutual funds to gain private market exposure. The company also uses an open-architecture approach to give clients access to Fidelity’s and third-party managers’ alternative investment vehicles, the company said. 

About 46% of advisors stated they were very interested in a model portfolio that offers a diversified portfolio of both traditional and alternative investments, according to a Fidelity survey conducted in December. 

This move contributes to a growing trend within the wealth management sector as advisors are seeking for alternative methods and investment options for their clients and their wealth transfers. 

“Wealth managers are looking for opportunities to expand beyond traditional asset classes to diversify portfolios, but may see implementation of alternative investments as a complex process,” Amanda Robinson, head of Wealth Advisory Managed Solutions Distribution at Fidelity Investments, said. “Fidelity’s open-architecture, custom model portfolios can offer an efficient and tailored solution to help meet advisors’ and their clients’ needs.” 

The custom model portfolio can be accessed through Envestnet’s wealth management platform. Last June, Fidelity Investments launched an investment initiative with Envestnet, alongside asset managers BlackRock, Franklin Templeton, and State Street Global Advisors.