Curian SMA platform adds exposure to alternatives

Curian Capital LLC has introduced limited exposure to alternative-class investments on its separately managed accounts platform. The SMA platform, which controls about $3 billion worth of client assets, will use exchange traded funds to provide clients with exposure to commodities, currencies and private equity. “To the degree we can do it, we want to try and replicate what the institutional investors do,” said Steve Young, Curian’s chief investment officer. The exposure to alternatives, made available Monday, will be limited to a maximum of 15% of each client’s portfolio. The Curian platform, which initially carved a niche in the retail SMA space by offering $25,000 account minimums, was already using ETFs to provide exposure to fixed-income and international strategies, along with stocks for domestic strategies. The expansion into the alternatives space was driven largely by the ability of the ETF industry to package some of the more esoteric strategies, according to Mr. Young. “The timing of the move into alternatives was due to the evolution of the ETF marketplace,” he said. Curian is based in Denver.