For decades, institutional investors have allocated significant capital to private assets including private debt, private equity, venture capital, real estate, infrastructure, and other ‘non-correlated’ strategies. By diversifying their portfolios into these areas, institutional investors have been able to reduce the volatility that comes with investing exclusively in public stock and bond markets.
For example, at the end of 2021 fiscal year, the Canada Pension Plan (CPP) managed $500 billion on behalf of Canadians; approximately 50% of CPP’s portfolio was invested in alternative private assets with the balance allocated to publicly traded stocks and bonds.
Traditionally, institutional-quality private asset strategies have been difficult for individual investors to access:
- They typically require minimum investment amounts of at least $2 million to $5 million
- are relatively illiquid (meaning they cannot quickly be converted
- often require that investors maintain significant personal cash reserves to meet contractual requirements of investing over multi-year periods
- are not usually eligible to be held in registered accounts like RRSPs
- require a high degree of investment and tax expertise to evaluate, often at significant expense.
By pooling our client capital together and working in partnership with top tier asset managers, Bridgeport can manage a wide range of private asset funds, all of which provide our clients access to a diversified, global portfolio of institutional-quality private assets. Our private asset funds remove the hurdles that had previously prevented individuals from obtaining the benefits of true portfolio diversification.
More information on our private asset pooled funds can be found here.