While institutional investors have long used private market investments, a growing choice of funds in this asset class is now catering to retail investors. But is the push from asset managers catching on with investors and advisors?
But asset managers are trying. To expand the alternative investments market in Canada, several fund companies – including BMO Global Asset Management and CI Global Asset Management – have launched private market funds with lower minimums than traditional private market funds, which often require millions to gain access.
Both leverage the expertise of managers’ of hundreds of billions of dollars of institutional money with strong track records of returns, says Jeff Shell, head of alternatives at BMO GAM.“an educational process” to help them understand the funds, their upsides and risks, and how they fit into portfolios.
The recently launched BMO Carlyle Private Equities Strategies Fund, on the other hand, is being used as a “return enhancer.” “In a world in which advisors want simple-to-understand and low-cost products, they’re being sold something that’s more expensive and more difficult to implement,” he says, adding that even