A major misunderstanding amongst many retail investors is the notion that they need daily liquidity in their entire portfolio when in many cases they do not. The truth is that most Canadian investors need income, growth and access to a some of their capital for various purposes, planned and unplanned. The majority of a private client’s portfolio will normally reside with them for life, only partially being consumed during their retirement with the rest passed down to the next generation or donated for philanthropy. For most, their portfolio is truly intended to be held as a long-term asset.
Alternative asset classes like Private Mortgages, Private Asset-backed Loans and Private Real Estate are more challenging to invest in for the individual retail investor due to longer dating periods and often high minimum entry requirements. Our multi-strategy – multi-manager and multi-investment approach is an excellent way for retail investors to gain access to these highly-sought after private investments. Long term returns have been solid for these categories, and the liquidity and entry barrier that has prevented most Canadians from gaining access is dramatically reduced with our approach.