If institutional investors have already shifted toward global diversification and private markets, why are most retail portfolios still stuck in the past?

In this episode of Insight Is Capital, host Pierre Daillie sits down with Clay Khan, Head of Canada and Managing Director at Neuberger Berman, to explore one of the biggest structural changes in modern portfolio construction: the migration of capital from public markets toward private assets and globally diversified strategies.

Drawing from Neuberger Berman’s “Solving for 2026” investment outlook, Khan explains how global macro forces—AI-driven productivity shifts, diverging fiscal and monetary policies, and evolving capital markets—are reshaping the investment landscape for both institutions and private investors.

The conversation dives into the growing dominance of private equity and private credit, why institutional portfolios increasingly resemble pension-style allocations, and why Canadian investors may need to rethink traditional 60/40 portfolio structures.

Khan also highlights emerging strategies gaining traction among sophisticated investors, including tax-loss harvesting, direct indexing, evergreen private market structures, and secondary markets in private equity. These innovations are gradually bringing institutional-grade investment strategies into the portfolios of high-net-worth investors and advisors.

Ultimately, the discussion centers on a crucial shift: moving from wealth accumulation toward wealth preservation and tax-efficient diversification, particularly for families transitioning from concentrated entrepreneurial wealth into multi-generational portfolios.

3 Key Takeaways

1️⃣ Institutional portfolios are leading the shift toward private markets

Canadian pension plans have steadily migrated capital from public markets toward private equity, infrastructure, real estate, and private credit in pursuit of the illiquidity premium and smoother return profiles.

2️⃣ Global diversification is finally broadening beyond the U.S.

While the S&P 500 has dominated recent years, Khan notes that EAFE and emerging markets recently outperformed, highlighting the growing case for international diversification in advisor portfolios.

3️⃣ Tax efficiency may be the next frontier in portfolio construction

High-net-worth investors are increasingly adopting tax-loss harvesting and direct indexing strategies to generate “tax alpha,” potentially adding meaningful after-tax returns over time.

⏱️ Timestamped Chapters

00:00 – Introduction: Markets entering a new macro regime 01:07 – What Neuberger Berman’s “Solving for 2026” outlook is signaling 01:27 – Clay Khan’s background and Neuberger Berman’s Canadian business 02:20 – Market shifts in early 2026 and global equity rotations 03:28 – Value vs growth and international outperformance 05:28 – Why institutional and retail portfolios look so different 06:46 – How Canadian pensions moved from public to private markets 10:02 – Why private credit is replacing hedge funds in portfolios 12:43 – The shrinking public market and expanding private economy 15:03 – The challenge of implementing alternatives in retail portfolios 18:35 – How family offices approach long-term investing 20:45 – Tax-loss harvesting and the rise of “tax alpha” 24:39 – Institutional investing philosophy: global diversification 26:09 – Why private companies may outperform public markets 28:13 – Solving liquidity challenges in private markets 29:34 – The booming private equity secondary market 31:59 – A real estate analogy for understanding private equity 34:34 – Where advisors are reallocating portfolios today 37:32 – The challenge of replacing fixed income diversification 39:46 – Lessons from Canadian pension portfolio construction 41:34 – How portfolio conversations have evolved over the last decade 45:05 – Evergreen private market structures 45:13 – What will define the next phase of Canadian portfolio construction 46:33 – Concentration vs diversification in wealth preservation 49:25 – The psychology of entrepreneurial wealth 51:19 – Final reflections on diversification and legacy planning

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