In this episode of the Insight is Capital podcast, Ilan Kolet, an Institutional Portfolio Manager in Fidelity's Global Asset Allocation team, discusses the current investment landscape, focusing on the divergence between the Canadian and U.S. economies, the significance of productivity growth, and the strategic inclusion of liquid alternatives in investment portfolios. Kolet highlights the U.S. economy's remarkable growth compared to other G7 countries and emphasizes the potential of a productivity expansion in the U.S. to enhance economic growth without stoking inflation. The conversation also covers Fidelity's decision to incorporate liquid alternative strategies into their managed portfolio suite, aiming to improve diversification and risk-adjusted returns for investors. This move reflects a deliberate and research-based approach to portfolio construction, underscoring Fidelity's commitment to innovation while maintaining a cautious and incremental investment strategy.

Timestamped Highlights

00:00 Catching Up After a Long Time

00:30 Divergence Between Canada and the U.S.

04:50 The Importance of Productivity

07:47 Stocks and Bonds Performance

10:12 Understanding Productivity Growth

16:39 Implications for Monetary Policy

20:14 Introduction and Episode Overview

21:04 Current Market Positioning

26:56 Incremental Investment Approach

27:06 Valuation and Sentiment in Investment Decisions

28:14 Comprehensive Global Asset Allocation Strategy

29:17 Manager Selection and Diversification

29:56 Rigorous Evaluation and Tactical Decisions

30:58 Challenges for Advisors

35:57 Balanced Fund of the Future

36:30 Inclusion of Liquid Alternatives

40:44 Democratizing Access to Alternative Investments

53:52 Strategic and Methodical Investment Decisions

55:04 Concluding Thoughts and Future Plans