Many Canadians have invested the same way for decades. This includes a portfolio primarily comprised of stocks and bonds. The typical Canadian balanced investor has an asset mix of approximately 60% equities/stocks and 40% fixed income/bonds. This is known as the traditional 60/40 portfolio.

In contrast, sophisticated investors such as pension plans, endowments, and high net worth individuals have adopted a new approach to investing. This approach comprises four asset classes; traditional Equities and Fixed Income, Alternative Assets and Alternative Strategies. We refer to this as the Four Asset Class Strategy. Our goal is to bring this new approach of investing to everyday Canadians.

We believe our four asset class strategy is a good solution to the following challenge investors face. There are diminished return expectations for traditional equity and fixed-income asset classes. McKinsey, Morgan Stanley and others forecast 50% lower returns for the typical 60/40 stock/bond portfolio over the next decade as compared to the previous generation due to low growth, low inflation, and low yields.

In this environment investors have three options:

1. Accept diminished returns, reduced diversification and potentially higher risk,

2. Increase equity exposure (albeit at the expense of higher risk)

3. Increase allocations to alternative assets and strategies and pursue more global portfolio exposure (especially to less efficient markets)

NorthPoint Global Partners Fund is a great option for those seeking option three listed above.

We have been investing this way since 2014 – methodically building and refining our funds – including layering in attractive alternative assets and strategies from around the world. With approximately $150 million of assets under management and over $1.5 billion in assets under advisement, NorthPoint Global Partners Fund is configured to grow this business in the service of clients who value the Canada Model as a suitable core holding in their portfolios.