In this episode of the Wealth Management Invest podcast, host David Bodamer sits down with Bob Long, CEO and partner of StepStone Private Wealth, to explore StepStone’s approach to developing private market investments for the wealth channel. 

Long discusses why Stepstone has opted for evergreen funds—semi-liquid, continuously invested structures rather than traditional drawdown funds. Such vehicles feature simplified tax reporting, no capital calls, and lower minimums, opening access to a wider range of investors. 

Key highlights from the episode include:

• An explanation for how evergreen fund structures provide access to investors typically cut off from alternative investments 
• A discussion of how Stepstone uses the semi-liquid structure across several alternative asset classes including infrastructure, private equity, and private credit.
• How financial advisors are using semi-liquid funds in some clients’ portfolios 
• And more

Connect With David Bodamer:

• [email protected] 
• WealthManagement.com
• LinkedIn: David Bodamer
• LinkedIn: Informa

Connect With Bob Long:

• StepStone Private Wealth
• LinkedIn: Bob Long

About Our Guest:

Mr. Long has three decades of experience in the private markets and has led investment teams for global firms in both the general partner and limited partner roles. He has served as the CEO of two publicly traded companies focused on expanding private market access for high-net-worth investors.

David Bodamer of WealthManagement.com sits down with Mike Scarsciotti, SVP and Head of Investment Specialists at Fidelity Investments, to discuss the changing dynamics of portfolio construction. Fidelity draws insights from analyzing 12,000 portfolios. Their conversation covers significant trends, including the growing popularity of ETFs, the resurgence of active management strategies, and evolving approaches to asset allocation gleaned from this analysis.

David and Mike discuss:

• How the usage of ETFs has grown in individual investment portfolios
• What is driving the evolution toward increased use of active ETF strategies
• What insights can be gained from current average portfolio allocations and how those are shifting
• What opportunities exist in real estate and other undervalued sectors
• And more

Connect With David Bodamer:

• [email protected] 
• WealthManagement.com
• LinkedIn: David Bodamer
• LinkedIn: WealthManagement.com

Connect With Mike Scarsciotti:

• Fidelity Investments: Investment Portfolio Insights 
• LinkedIn: Mike Scarsciotti

About Our Guest:

Mike Scarsciotti leads the specialist sales team within Fidelity Institutional, including Asset Class Investment Specialists (Global Equity, Fixed Income, and Alternatives), Portfolio Solution Specialists (Model Portfolios and Direct Indexing), and Capital Market Strategists.

David Bodamer sits down with Joan Solotar, Global Head of Private Wealth Solutions at Blackstone, to explore the evolution of private market investments and how financial advisors can leverage these opportunities to enhance their clients’ portfolios. Joan discusses how technology and innovation are reshaping investment processes, making it easier for a broader range of investors to participate in private markets.

Gain insight as David and Joan touch on:

• The increasing accessibility of private investments to individuals with lower investible assets
• The role of education in helping advisors effectively utilize private market solutions
• How technology is streamlining the investment process for advisors and investors
• Insights into portfolio construction using private equity, credit, and real estate
• And more

Connect With David Bodamer:

• [email protected] 
• WealthManagement.com
• LinkedIn: David Bodamer
• LinkedIn: Informa

Connect With Joan Solotar:

• Blackstone
• LinkedIn: Joan Solotar

About Our Guest:

Joan Solotar is the Global Head of Private Wealth Solutions. She serves on the firm’s Management Committee. Blackstone’s Private Wealth Solutions’ mission is to bring institutional quality products across a broad spectrum of alternative asset classes to high-net-worth clients and their advisors. Ms. Solotar also serves on the board of directors of First Eagle Investment Management.

Before joining Blackstone in 2007, Ms. Solotar was Head of Equity Research at Bank of America Securities and a highly ranked Institutional Investor All-Star financial services analyst at Credit Suisse and Donaldson, Lufkin & Jenrette.

David Bodamer speaks with Jack Shannon, a senior analyst on Morningstar’s manager research team, in an episode recorded in front of a live audience at the Morningstar Investor Conference. They delve into the distinctions between active and passive ETFs, highlighting the nuances in their management and trading and whether active ETFs deliver on their premises. 

Listen in as David and Jack highlight:

• The increasing growth of active ETFs, with active launches accounting for a growing percentage of ETF product development
• Assessment of the performance of active ETFs to date
• The potential for active ETFs to cannibalize mutual fund assets
• The turnover rates of active ETFs, with many new launches often closing within a few years due to fad chasing or lack of compelling investment strategies
• What other research Shannon is working on for the rest of the year
• And more

Overall, the episode provides an insightful look into the evolving landscape of active ETFs and their place in the broader investment market.

Resources:

• Invest in SpaceX Alongside Elon Musk? Why This Closed-End Fund Is Not Worth the Ride 
• Mutual Fund Managers Are Wrong More Than They’re Right

 

Connect With David Bodamer:

• [email protected] 
• WealthManagement.com
• LinkedIn: David Bodamer
• LinkedIn: Informa

Connect With Jack Shannon:

• Morningstar
• LinkedIn: Jack Shannon

About Our Guest:

Jack Shannon is a senior manager research analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He focuses on actively managed equity strategies and is the lead analyst for MFS and Artisan Partners, among other firms.

Prior to joining Morningstar in 2020, Shannon worked in commercial banking and was a consultant providing subject matter expertise on complex financial litigation. Shannon holds a bachelor’s degree in economics and history from James Madison University. He also holds a Master of Business Administration in investments and corporate finance from the University of Notre Dame’s Mendoza College of Business.

WealthManagement.com’s David Bodamer speaks with Jake Miller, Co-Founder and Chief Solutions Officer at Opto Investments, about the evolving landscape of private markets and how RIAs can leverage new strategies to benefit their clients. They touch on the opportunities and challenges within private equity, private credit, infrastructure, and real estate, as well as Opto’s recent partnership with Mercer Advisors.

Jake discusses:

• The development and goals of Opto Investments and their role in the burgeoning market of private investments for the wealth channel
• Details about the recent partnership with Mercer Advisors and the opportunities Mercer is bringing to its qualified purchaser clients developed with Opto. 
• Insights on the current state and future trends within private investments
• The importance of a fiduciary-first approach in managing private markets
• And more

Connect With David Bodamer:

• [email protected] 
• WealthManagement.com
• LinkedIn: David Bodamer
• LinkedIn: Informa

Connect With Jacob (Jake) Miller:

• LinkedIn: Jake Miller
• Opto Investments

About Our Guest:

Jacob (Jake) Miller is the Co-Founder and Chief Solutions Chief Solutions Officer at Opto Investments. Prior to helping found Opto, Jacob was at Bridgewater Associates. He has a passion for sensible long-term investing, systematizing investment processes, and distilling complex market dynamics into clear, logical linkages that help people better understand their investments. 

Jacob has been managing money for family and friends since he was 16 and is a certified market junkie. While he has a background in macroeconomics and high-yield debt, he finds the challenges and opportunities in the private markets space far more interesting and important, both for investors and society.

WealthManagement.com’s David Bodamer sits down with Doug Huber, Vice President of Investment Strategy at Wealth Enhancement Group, to delve into how the RIA approaches private market strategies amid the ongoing evolution of alternative investments. 

Doug focuses on:

• What is the trend of democratization in alternative investments and increased investor access
• How education plays a crucial role in understanding and leveraging alternative assets
• The importance for RIAs of undertaking due diligence and manager selection in navigating private markets
• Strategies that can be employed for portfolio diversification and achieving various investment objectives through alternatives
• And more

Connect With Doug Huber:

• LinkedIn: Doug Huber
• Wealth Enhancement Group

Connect With David Bodamer:

• [email protected] 
• WealthManagement.com
• LinkedIn: David Bodamer
• LinkedIn: Informa

About Our Guest:

Doug is responsible for the firm’s external manager research across both traditional and alternative investment strategies. He joined Wealth Enhancement Group in 2021 through the North American Management merger. Prior to joining North American Management, he was a Senior Research Analyst at Federal Street Advisors, where he led the alternative investment program. A golf fanatic, Doug lives in Lincoln, MA with his wife.

Listen in as David Bodamer sits down with Karen Veraa, Head of iShares US Fixed Income Strategy, to discuss fixed-income ETFs. Karen shares insight on navigating the current market complexities, from managing inflation impacts to exploring strategic investment avenues.

Karen focuses on:

• The current state and future prospects of fixed-income markets
• Insights into fixed-income ETFs and their role in today’s investment strategies
• The concept of bond laddering and its benefits for investors
• Navigating market expectations and the role of the Federal Reserve
• And more

Connect With Karen Veraa:

• LinkedIn: Karen Veraa
• BlackRock

Connect With David Bodamer:

• [email protected] 
• WealthManagement.com
• LinkedIn: David Bodamer
• LinkedIn: Informa

About Our Guest:

Karen Veraa, CFA, is a Fixed Income Product Strategist within BlackRock’s Global Fixed Income Group focusing on iShares fixed income ETFs. She concentrates on supporting iShares clients, generating content on fixed income markets and ETFs, developing new fixed income iShares ETF strategies, and partnering with the iShares team on product delivery. She writes about fixed income ETFs and trends in that sector.

The majority of Lawrence’s career has focused on the meeting point of finance and technology. At Goldman, Sachs & Co., where he worked for 17 years, he was a partner & managing director, most recently serving as the co-head of the Global Technology Banking Group (part of the Investment Banking Division), focusing on all aspects of technology including the internet & e-commerce, software, services & hardware. He has also worked as director of various digital & e-commerce businesses, as well as a series of acquisition vehicles.

Listen in as David Bodamer sits down with Lawrence Calcano, Chairman and CEO of iCapital, to explore the world of alternative investments and their role in modern portfolio strategies. They unravel the complexities of the alt space, examine recent developments at iCapital, and discuss how advisors are integrating these assets into their offerings for a more diversified investment approach.

Lawrence focuses on:

• The importance of education in the early adoption phase of alternative investments.
• How alternatives can enhance portfolio diversification and performance.
• How innovative fund structures make alternative investments more accessible.
• The role of technology in simplifying the investment process in alternative assets.
• And more

Connect With Lawrence Calcano:

• LinkedIn: Lawrence Calcano
• iCapital

Connect With David Bodamer:

• [email protected] 
• WealthManagement.com
• LinkedIn: David Bodamer
• LinkedIn: Informa

About Our Guest:

Lawrence is the Chairman and CEO of iCapital. He began advising and working with iCapital shortly after its 2013 founding, leading key strategic and business development initiatives, before joining full-time as CEO in early 2014. Since then, he has led the rapid growth – both organic and through acquisition – of iCapital, building it into a leading global Fintech company.

The majority of Lawrence’s career has focused on the meeting point of finance and technology. At Goldman, Sachs & Co., where he worked for 17 years, he was a partner & managing director, most recently serving as the co-head of the Global Technology Banking Group (part of the Investment Banking Division), focusing on all aspects of technology including the internet & e-commerce, software, services & hardware. He has also worked as director of various digital & e-commerce businesses, as well as a series of acquisition vehicles.

WealthManagement.com’s David Bodamer is joined by Tony Davidow, Senior Alternatives Investment Strategist with Franklin Templeton Institute.  With over 35 years in the industry, Tony shares insights on the increasing accessibility of alternative strategies and the role of private credit, private equity, and real estate in diversified portfolios. He emphasizes the importance of education for advisors in alternative investments, the need for operational efficiency, and working with institutional quality managers to navigate this complex yet rewarding investment space.

Tony focuses on:

• How interval and tender offer funds have revolutionized access to alternative investments for a broader range of investors
• The significance of diversification in the 60/40 portfolio strategy and the need for alternative investments in today’s market environment
• How private equity, private credit, and private real estate hedge against market risks and provide enhanced portfolio diversification
• Why the institutional quality of asset managers is crucial in ensuring successful investments in alternative asset classes
• And more

Connect With Tony Davidow:

• LinkedIn: Tony Davidow
• Franklin Templeton
• Knowledge Hub | Alternatives by FT

Connect With David Bodamer:

• [email protected] 
• WealthManagement.com
• LinkedIn: David Bodamer
• LinkedIn: Informa

About Our Guest:

As an investment strategist for the Franklin Templeton Institute, Tony Davidow is responsible for developing and delivering the Franklin Templeton Institute’s insights on the use of alternative investments through independent research, participating in industry conferences, and webinars, and engaging directly with key partners and clients. Prior to his current role, Mr. Davidow held senior leadership roles with Morgan Stanley, Guggenheim and Schwab among other firms. Davidow began his career working for a New York-based Family Office and has worked directly with many institutions and ultra-high-net-worth families over the years. He is a frequent writer and speaker with deep expertise in the use of alternative investments, asset allocation, and portfolio construction, as well as goals-based investing. 

Mr. Davidow received the prestigious Investments & Wealth Institute Wealth Management Impact Award in 2020 for his contributions to the wealth management industry; and was awarded the Stephen L. Kessler writing award in 2017, and honorable distinction in 2015.

Disclosure:

This material reflects the analysis and opinions of the speakers as of March 4, 2024 and may differ from the opinions of portfolio managers, investment teams or platforms at Franklin Templeton. It is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice.

The views expressed are those of the speakers and the comments, opinions and analyses are rendered as of the date of this podcast and may change without notice. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, security or strategy. Statements of fact are from sources considered reliable, but no representation or warranty is made as to their completeness or accuracy. 

What Are the Risks?

All investments involve risks, including possible loss of principal. The value of investments can go down as well as up, and investors may not get back the full amount invested. 

Investments in many alternative investment strategies are complex and speculative, entail significant risk and should not be considered a complete investment program. Depending on the product invested in, an investment in alternative strategies may provide for only limited liquidity and is suitable only for persons who can afford to lose the entire amount of their investment. An investment strategy focused primarily on privately held companies presents certain challenges and involves incremental risks as opposed to investments in public companies, such as dealing with the lack of available information about these companies as well as their general lack of liquidity. Diversification does not guarantee a profit or protect against a loss. 

Risks of investing in real estate investments include but are not limited to fluctuations in lease occupancy rates and operating expenses, variations in rental schedules, which in turn may be adversely affected by local, state, national or international economic conditions. Such conditions may be impacted by the supply and demand for real estate properties, zoning laws, rent control laws, real property taxes, the availability and costs of financing, and environmental laws. Furthermore, investments in real estate are also impacted by market disruptions caused by regional concerns, political upheaval, sovereign debt crises, and uninsured losses (generally from catastrophic events such as earthquakes, floods and wars). Investments in real estate related securities, such as asset-backed or mortgage-backed securities are subject to prepayment and extension risks.

An investment in private securities (such as private equity or private credit) or vehicles which invest in them, should be viewed as illiquid and may require a long-term commitment with no certainty of return. The value of and return on such investments will vary due to, among other things, changes in market rates of interest, general economic conditions, economic conditions in particular industries, the condition of financial markets and the financial condition of the issuers of the investments. There also can be no assurance that companies will list their securities on a securities exchange, as such, the lack of an established, liquid secondary market for some investments may have an adverse effect on the market value of those investments and on an investor’s ability to dispose of them at a favorable time or price. Past performance does not guarantee future results.

Data from third party sources may have been used in the preparation of this material and Franklin Templeton (“FT”) has not independently verified, validated or audited such data. FT accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments, opinions and analyses in the material is at the sole discretion of the user.

WealthManagement.com’s David Bodamer sits down with Aaron Filbeck, who leads UniFi by CAIA, to delve into how the CAIA association contributes to the education surrounding alternative investments. They explore the recent overhaul of the CAIA’s core program, designed to equip industry experts with a thorough grasp of alternative investment approaches and their role in asset allocation. 

Aaron focuses on:

• How CAIA is adapting courses for modern evolution within the financial space
• What obstacles did CAIA face in developing its new courses
• How has the accessibility of alternative strategies and asset types been influenced by other factors
• What is the overarching mission of CAIA in terms of providing education and aiding individuals in making informed portfolio decisions
• And more

Connect With Aaron Filbeck:

• LinkedIn: Aaron Filbeck
• UniFi by CAIA

Connect With David Bodamer:

• [email protected] 
• WealthManagement.com
• LinkedIn: David Bodamer
• LinkedIn: Informa

About Our Guest:

Aaron Filbeck, CAIA, CFA, CFP®, CIPM, FDP oversees UniFi by CAIA, a learning platform dedicated to educating the private wealth management industry on alternative investments. He was previously responsible for leading and implementing the CAIA Association’s content agenda, thought leadership initiatives, and content development for the CAIA Charter Program.

Innovations in product development have increased access to private markets for financial advisors and their clients. Steve Brennan, managing director and head of Private Wealth Solutions at Hamilton Lane, joined David Bodamer to discuss the state of private investments and Hamilton Lane’s path to developing private wealth strategies.  Steve focuses on: The benefits of private …

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