Strategies to diversify across major asset classes and geographies
Alternative investments can potentially provide investors with reduced risk and improved long-term results in their investment portfolios. Alternatives represent a range of non-traditional investments that can provide investors with additional sources of diversification 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 percent to alternative investment strategies, with some as high as 50 percent. A few include the Canada Pension Plan Investment Board, Ontario Teacher’s Pension Plan, British Columbia Investment Management Corporation, and the Public Sector Pension Investment Board.
It’s the access to alternatives that’s new
This alternative investments trend began in the early ‘90s with the goal of better diversifying significant institutional 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.
Contact us today to learn more about how alternative investments can strengthen your portfolio.
