Retail Friendly Private Debt

Good day,

Interest rates in both Canada and the US are expected to continue to rise creating significant headwinds for the bond market.  This, in turn, makes it extremely difficult to find conservative yet high yielding investments to diversify equity portfolios. 

Given the above, not only are American pension and endowment funds significantly overweighting alternative investments (alts), our very own Canada Pension Plan’s allocation to alts has surpassed 50%.  While institutional money can easily access private debt and other alts, options for retail investors continue to be limited for a variety of reasons.  The investment industry’s regulators are finally taking notice and while the plan is to reduce the barriers to entry for retail investors for this space, the bureaucratic and slow-moving culture at the large investment conglomerates will continue to limit investor access for at least the next few years.

As I type this, the iShares Core Canadian Universe Bond Index ETF which tracks Canadian bonds has lost 1.2% of its value year to date. Meanwhile, the Rockridge Private Debt & Real Estate Pool sees consistent positive months and is on track for an annual return of approximately 7%.

The investment pool is Canada’s first multi-strategy, multi-provider private debt and real estate pool of this type.  Our firm’s relationship with the Canadian Asset Manager, Willoughby Asset Management, gives our advisors exclusive access to the private debt pool.  In addition to attracting individual client retail dollars, financial advisors at other institutions have taken notice which continues to contribute to Harbourfront’s rapid growth across Canada.  Two new large investment teams joined us this week including the Green Private Wealth Council in Woodstock Ontario and Darrell Smith in Belleville Ontario.

Have a great weekend.



“I have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone and may not reflect the views of Harbourfront Wealth Management. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this report should be viewed as a reflection of my informed opinions rather than analyses produced by Harbourfront Wealth Management Inc.”

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Comments (1)

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