New option offers diversification and customization benefits for investors. Fractional-share separately managed account platform provider Curian Capital has expanded its Custom Style Portfolios (CSP) program to include exposure to alternatives through ETFs whose underlying investments include, but aren't limited to, commodities, foreign currencies and private equity.

"Curian's value proposition is built upon the concept of delivering the benefits of institutional money management and customizable account portfolios to mainstream investors," says the firm's CIO Steve Young.

Expansion

The introduction of alternatives comes about six weeks after Curian enlarged CSP with the addition of two income-focused strategies.

"By continuing to expand the asset classes and investment options available on the platform, we are able to help advisors' clients address a broad range of risk tolerances, time horizons and investment objectives," says Curian's CEO Michael Bell. "The addition of an alternatives asset class also reflects Curian's commitment to utilizing the latest investment product innovations for the benefit of our clients."

Long an important component of portfolios managed by foundations, pension plans and endowments, alternatives typically don't move in tandem with traditional investments such as stocks and bonds. As a result, they have the potential to generate positive returns even in adverse economic or market conditions.

Curian chooses the ETFs that make up its alternative-asset allocation, but it doesn't managed directly manage the underlying strategies or specific securities that go into the investments. The ETFs is an optional selection that can be used in conjunction with all of the strategies available on Curian's platform.

Denver-based Curian offers a variety of customization options within its managed account portfolios including eight tax-management options, multiple equity and fixed-income implementation strategies and an assortment of different asset classes, such as international equity and real estate. Curian clients also have the ability to exclude individual securities or up to 14 social sectors based on their values and investment objectives.

Curian, a subsidiary of Lansing, Mich.-based Jackson National Life Insurance, gets most of its business from independent brokers, but it also works with RIAs, banks and credit-union service organizations. It had $3.2 billion in assets under management at the end of September 2008. -FWR

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