Our investment approach is focused. We aim to educate our clients by showing them alternative ways to reach their investment goals. If you have mutual funds, GICs, a pension plan, or any other traditional market-based investments, you are likely tired of the stock market roller coaster.
Today’s global markets are very complex, and most often controlled by emotion, and hype. Your investment plan could be entirely in the hands of a volatile stock market at record highs, and you could have little control over who manages your money. We believe it is important to take charge of your portfolio. Now is the time to look at alternative asset classes as opposed to the more traditional approach. Lets take a look at an example:
The Alternative Asset Allocation
“A great way to diversify your RRSPs, TFSAs, Non-Registered, or Corporate Investments”
In an alternative asset allocation, we can structure your investments to hold real assets that have little correlation to the stock market. Alternative investments refer to the many asset classes that fall outside of the traditional definitions of public stocks, mutual funds, publicly traded bonds, and cash.
In a portfolio that has less correlation, you have the ability to lower your risk profile and increase your potential returns.
- Fixed Income
Fixed-Income investments typically will be offered through either bonds, or debentures. These debt-instruments usually provide immediate cash flow to a portfolio, in some cases without the volatility of the stock market you would typically find in a mutual fund. While the investments within the fixed-income section of your portfolio can vary, the underlying concept does not change. An investment in an underlying asset that produces predictable cash flow without the fluctuation of the markets. There are many different types of fixed-income investments you can add to this asset class, which adds to the excitement of creating a new portfolio with us!
- Real Estate
Many people will look to real estate to diversify their portfolio. The reality for most is – the cost of adding this strategy to your investment portfolio is high, the risks and the length of time required to realize the growth opportunity can be significant. Now, you can use your money to pool together with other private or institutional investors in private offerings of Real Estate, Real Estate Investment Trusts (REIT), Infrastructure, or Fixed Rate Mortgages (sometimes referred to as a Mortgage Investment Corporation (MIC). Often, these are cash flowing or income producing investments that offer upside growth potential, physical ownership of the underlying assets, and stable, predictable returns.
A well diversified portfolio should typically have some form of exposure to commodities such as oil and gas. Traditionally, if an investor wanted to diversify their portfolio they were purchasing shares in an oil and gas company, or perhaps an exchange traded fund (ETF) which followed the particular commodities index. While this can offer you exposure to the commodity itself, it can still follow the volatile pattern of the stock market, guided by the underlying stocks.
We believe in a portfolio of real asset based commodity investments. This allows an investor to ‘hedge‘ against the rising costs of oil and gas by actually owning a share of the producing asset. Typically, these investments will allow direct ownership in already producing wells acquired below market cost, which are actively producing oil and gas assets which are typically hedged to protect against the volatility of the commodity itself.
Land investments can allow an investor to add real physical ownership of land within their portfolio. This land is typically acquired for a discount to their market value, and in an area which will at some point be re-zoned from agricultural use, and developed into commercial or residential use. The companies we typically use for land based investments are some of the largest in North America, with proven track records and great management. These land based investments can be localized, or spread out across different regions of Canada and The United States.
- Public Markets / Portfolio Managers
We are licensed to transact Segregated Funds, which look similar to a mutual fund, but can offer death benefit, maturity guarantees and may also offer creditor protection. In the past, the cost to own these types of funds were significantly more than a mutual fund, but in recent years the management fees on Segregated Fund products have decreased significantly. In addition, we also have access to Registered Portfolio Managers, which have typically only been accessible to high net worth individuals. When we refer you to a Portfolio Manager, you receive a customized portfolio specifically designed to meet your needs.
**disclaimer** The above information is not intended to provide specific investment advice to any individual or business entity and should not be relied on as such. Persons and/or business entities seeking financial and investment advice should always seek consultation from licensed individuals in their home province. Curtis Haigh is licensed in all jurisdictions in which he provides financial services.
This is for general information purposes only. No specific offer is made, either expressed or implied. Curtis Haigh’s services are only available in Canada, and only in jurisdictions where these programs and services may be legally offered. Before any investment, individuals or business entities should seek independent financial, tax, and legal advise.
Curtis Haigh is a licensed private wealth advisor for Raintree Financial Solutions, an Alberta-based Exempt Market Securities Dealership. Exempt Market Securities are offered through offering memorandum and subject to the provincial securities regulations in regions where they are sold. Always obtain a copy of the offering memorandum when considering an exempt market investment, and consult advice from a licensed investment professional.