Investments.
While pension & endowment funds recognize the importance of diversification by including private debt and real estate in their portfolios, retail investors have a difficult time accessing alternatives to stocks and bonds. Private debt and real estate may provide portfolio stability and offset the volatility in equity and fixed income markets.
Faced with increasing interest rates, investors are struggling to find yield without increasing risk as traditional bonds no longer work. Pension and endowment funds have been shifting from publicly traded fixed income investments to private debt to enhance returns.
When most of us think of investing, we think of the stock market – investing in publicly traded equities. While most retail investors compete for the same, limited number of public companies listed on global exchanges, tens of millions of private businesses exist worldwide, many of which also seek to raise capital by issuing equity or borrowing from investors. Investing in private companies is not new, but for the most part, has only been accessible by institutional investors such as pension and endowment funds, charitable foundations and the ultra-high-net-worth. Until now. Harbourfront has access to retail friendly private businesses including private equity, private debt and private real estate. This means you can access private securities through your Harbourfront advisor.
Private securities generally provide portfolio stability and reduce the volatility in equity and fixed income markets. Faced with historically low interest rates, bonds no longer do their job so the old 60/40 ‘balanced’ portfolio approach, no longer works.
