The wealthy invest differently
The most successful and wealthy investors in the world including pension funds and endowment funds invest in opportunities not available to the typical investor. These opportunities go beyond the public stock and bond markets and are a key component to their wealth creation and preservation strategies. In your quest for wealth creation, you do not need to take unnecessary risks to generate wealth when you have access to the same high quality investment opportunities as the wealthy.
Let us show you the difference ACCESS can make in securing your financial future. Our team of professionals will meet with you to explain the opportunities our clients have access to through Mandeville Private Client Inc. and review the suitability for your portfolio.
The world is changing and so is investing. Align yourself with a firm that can position your portfolio for optimal wealth creation and preservation.
Recipe For Wealth Creation
Some of the most respected and successful endowment and pension funds utilize private and alternative investing to enhance performance and reduce volatility.
Yale
OMERS
OTPP
CPP
Private Investing and the Illiquidity Discount
You may be asking yourself what the difference is between public and private investments. Public companies are liquid which means you can buy and sell them daily on the public markets. What investors may not realize is that they are paying a significant premium for that liquidity. Unlike publicly traded businesses, private businesses aren’t as liquid and take time to sell. As a result a liquidity discount is often applied to their valuation which means you can purchase a private company with essentially the same qualitative and quantitative characteristics as a public business for a 20-30% “liquidity discount” which translates into higher return potential.
ARE YOU PAYING FOR LIQUIDiTY YOU DON’T NEED?
You may be PAYING for liquidity that you don’t even need. This is an inherent dysfunctionality in the retail markets that we at Mandeville recognize and want to address.
Traditionally, you have a choice between public equity and fixed income with a linear risk reward relationship. For lower risk, you give up growth potential and for growth potential you take on additional risk. Invest like the wealthy, for the portion of your portfolio that is long-term, why not take advantage of the illiquidity discount presented in the private markets and purchase high quality businesses at a discount?
Our team takes a more detailed approach by assessing your risk level and by conducting a liquidity analysis to determine your individual liquidity needs. By identifying long term investments that you do not need access to right away, we can leverage the liquidity discount to further enhance returns and reduce volatility.
In the below triangle you can see the options when you have ACCESS to quality private and alternative investing. Instead of being stuck choosing between low volatility and growth, you can give up liquidity when it is not required to enhance your returns without taking on added risk.
By limiting yourself to only a portion of the investment landscape you are being forced into an unnecessary trade off. We can review the suitability of these types of investments for your risk tolerance and show you how adding private and alternative investments can lead to lower volatility without giving up return potential.
A visual representation of the trade offs investors must choose. This is meant as a broad generalization, each category encompassing a variety of investments which have varying ranges of liquidity, volatility and growth potential. Part of our fiduciary responsibilities as advisors is to understand your personal risk tolerances and ensure every investment solution is suitable for you.
Partnering with a Global Leader
Mandeville Private Client Inc. holds your assets in custody with Fidelity Clearing Canada, ULC, a leading carrying broker in the Canadian marketplace. Fidelity, like Mandeville, is a member of the Canadian Investor Protection Fund (CIPF) and the Canadian Investment Regulatory Organization (CIRO).
Fidelity is a global leader in the delivery and servicing of investment accounts. It has access to a vast global network of expertise which benefits Mandeville and its Canadian clients.