Investment consulting firm Callan is expanding its educational offerings to feature alternative investments.
The new coursework offered by the firm, Framework of Alternative Investments, is geared towards fiduciaries wanting to better understand institutional investing and will be offered through the Callan On-Demand Education (CODE) platform. It features topics on private equity, private credit, real assets and hedge funds.
“I am really excited about this initiative,” said CEO and chief research officer Greg Allen in a statement. “My hope is that, over time, the CODE platform will contribute to a better-educated institutional investment industry. This coursework not only deepens learners’ understanding of the mechanics of institutional investing, but it also gives insight into how decisions actually get made in the boardroom.”
The CODE platform currently offers courses dedicated to plan governance, overview of capital markets, asset allocation and diversification, investment manager search and evaluation considerations, and public market asset classes. Its coursework ranges from introductory courses aimed towards college students and interns, to advanced classes for asset management professionals, consultants, retirement plan trustees, and investment managers.
The newest course offered by Callan comes at a time when more participants are showing interest in alternative investments. A report by Bank of America in June found that younger investors are considering alternatives when investing, as more move outside the scope of the traditional stock and bond market. According to those findings, currently, 17% of Millennial and Gen Z investors are allocating their investments to alternatives, with 93% of them planning to add more within the next few years. Another 49% own cryptocurrencies while 38% expressed an interest in owning it.
Despite the interest, a brief by Cerulli Associates in May contends with the idea that more participants are adopting such strategies, and especially in their retirement plans. Instead, that research suggests that select alternative investments, like private real estate and private equity, could be more favorable to employers if presented in custom target-date funds (TDFs).
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
