The dismal performance of both stocks and bonds in 2022 left many investors scratching their heads, wondering how to achieve their investment goals with major asset classes tanking. In response, alternative investments have emerged as a viable solution, offering diversification and resilience in volatile markets.
The alternative investment landscape is vast, encompassing a range of assets like private credit, real estate, and leveraged ETFs. As investors and advisors seek to navigate this complex terrain, asset managers have stepped up their game, creating new products and educational programs to demystify the world of alternative assets.
According to Will Stevenson of Investor Economics, companies that provide comprehensive training for advisors are gaining ground in this growing market. With alternative investments becoming increasingly popular in Canada, assets under management in this category have soared to $39.7 billion, reflecting a significant shift towards diversification strategies.
Purpose Investments Inc. and Fidelity Investments Canada are two firms at the forefront of this trend, offering a suite of alternative funds and ETFs to meet the rising demand. By focusing on education and outreach, these companies are empowering advisors to incorporate alternative assets seamlessly into their clients’ portfolios, ultimately enhancing risk-adjusted returns and driving interest in total portfolio solutions.
As the investment landscape continues to evolve, alternative investments are likely to play an increasingly prominent role, reshaping traditional portfolio construction and paving the way for a new era of diversified investing.
