About alternative investments
Strategies to diversify across major asset classes and geographies
Alternative investments offer investors the potential for lower risk and better long term outcomes in their portfolios
Alternative Investments represent a range of non-traditional investments that can provide investors with additional sources of diversification (lower risk) AND income for their portfolios. As opposed to traditional portfolios of stocks and bonds, alternatives may include direct exposure to infrastructure, timberland, farmland, real estate, private equity and private debt to name a few.
Many of Canada’s pension plans, some of the largest and most respected in the world, now have allocations of over 25% to alternative investment strategies, with some as high as 50%. A few of these include the Canada Pension Plan Investment Board, Ontario Teacher’s Pension Plan, British Columbia Investment Management Corporation and the Public Sector Pension Investment Board. This trend began in the early 90s with the goal of better diversifying their portfolios and strengthening their long term risk adjusted returns.
Until recently, access has been limited to these very large investors, due primarily to two large obstacles; accessibility and liquidity. Through RBC’s expertise, scale and partnership, we have been able to work with some of the leading global providers of alternative investments to bring our high net worth and qualified clients access to this unique and important asset class.
Please reach out to our team to learn more about Alternative Investments and how they can strengthen your overall portfolio.
