Alternative investments can be a significant asset in diversifying and enriching your portfolio. The “Thrive in ’25” webinar series, featuring industry experts Addy Saeed and Kaz Jaffer, delves into innovative strategies for passive investing using equity and debt strategies. This blog post summarizes the key insights from the first webinar in the series.

Introduction to Alternative Investments

Welcoming all attendees, Addy Saeed, a registered dealing representative with Waverley Corporate Finance, introduces the concept of alternative investments. He outlines the agenda, which includes a comprehensive guide to equity and debt strategies, an exploration of investment opportunities, and guides on utilizing digital tools for engaging with the presenters during the webinar.

Key Benefits of Passive vs. Active Investing

Addy outlines two primary investment methods: active and passive investing. While active investing involves direct ownership and management of assets like real estate, passive investing is defined by its minimal initial capital requirement, absence of debt involvement, professional management, and diversification across multiple assets. This method leverages non-traditional investment options beyond stocks and bonds, thus offering robust diversification.

Advantages of Real Estate and Private Equity

Don McDonald from Waverley Corporate Finance explains why Canadians heavily invest in public equities and bonds, pointing out the control exerted by banks and life companies. He shares insights into why the “smart money” is often directed towards private equities and real estate for better risk-adjusted returns, better capital protection, and comparatively low volatility.

Exploring Real Estate Investing

Kaz Jaffer picks up the baton to describe why additional scrutiny is required when dealing with alternative investments as compared to public equities. Private alternative investments tend to capitalize on the tangible appreciation of assets rather than sentiment-driven market trends. Investors must also consider factors like project-specific risks and capital accessibility.

Equity vs. Debt Investment Strategies

Kaz further emphasizes understanding equity and debt strategies, underscoring the necessity for investors to ascertain their position within the capital structure—whether reaping the rewards through profit sharing in equity or through interest payments in debt.

Ensuring Compliance and Customer Knowledge

The webinar underscores the importance of compliance through Know Your Customer (KYC) and Know Your Product (KYP) processes, fit to ascertain suitable selections tailored to individual client profiles. Addy and Kaz, as regulated dealing representatives, are required to adhere to the strictest compliance practices to protect the public interest.

Investment Opportunities Presented

Four investment opportunities discussed in the webinar include:

Centurion Asset Management: A household name targeting 7-12% annual returns by investing in 158 properties across Canada.

Durum Industrial REIT: Offers exposure to industrial real estate, growing significantly due to the e-commerce boom with a target return of 8-12%.

Ginkgo MIC: A mortgage investment corporation providing annual returns in the vicinity of 9%, leveraging a diversified loan portfolio.

North America Home Finance: Provides a development opportunity in Langford, BC, with expected returns of 55% over approximately 36 months.

Final Thoughts

This introductory session in the Thrive in ’25 series illustrates the advantages of alternative investing and highlights the importance of due diligence, legal compliance, and strategic diversification. Engaging with experts and seeking personalized advice are crucial steps in navigating the world of alternative investments.

Websites Mentioned