Investing in Alternative Assets: What Calgary Investors Should Know

Investing in Alternative Investment Assets: What Calgary Investors Should Know

For many Calgary investors—especially high-net-worth professionals, business owners, and retirees—public equities and bond investments are no longer enough to meet long-term goals. With increased market volatility, inflation risk, and low fixed-income yields, more investors are exploring alternative investment assets as a way to diversify and enhance returns in their wealth management strategy in Calgary.

But what exactly are alternative investments, and do they make sense for your investment portfolio?

In this article, we’ll explain the types of alternative investments, their risks and benefits, and how they can fit into a well-structured investment strategy.

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What Are Alternative Investment Assets?

Alternative assets are investments that fall outside traditional stocks and bonds. They include:

• Private equity: Ownership in private companies not listed on stock exchanges
• Private credit: Non-bank loans to businesses or real estate projects
• Real estate: Direct or pooled investments in commercial or residential property
• Infrastructure: Investments in utilities, toll roads, airports, or renewable energy
• Hedge funds: Pooled funds using advanced strategies (long/short, arbitrage, etc.)
• Commodities: Gold, oil, agriculture, and other physical goods

These assets tend to behave differently than public markets, offering potential for diversification, income, and inflation protection.

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Why Alternative Investments Matter for Calgary Investors

In today’s environment of low interest rates and high equity valuations, alternative investments offer compelling advantages:

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Diversification

Alternative investments have lower correlation to stocks and bonds, helping reduce overall investment portfolio volatility—especially during downturns.

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Access to Unique Income Streams

Private credit and real estate can generate steady income, often with lower sensitivity to public markets.

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Potential for Higher Returns

Certain Private equity, for example, has historically outperformed public markets over long periods—though it comes with higher risk and illiquidity.

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Inflation Hedge

Real assets like infrastructure, commodities, and real estate can help preserve purchasing power during inflationary periods.

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Who Should Consider Alternative Investments?

Alternative investments aren’t for everyone. They are best suited for:

• High-net-worth investors with longer time horizons
• Professionals with stable income who can handle illiquidity
• Business owners looking to diversify away from operational risk
• Clients working with a discretionary portfolio manager who can access institutional-quality funds

Because many alternative investments are private, they are not always available through retail brokerages. At MRG Wealth Management, our clients work with a discretionary financial advisor in Calgary and have access to vetted, institutional-grade alternative investments for qualified clients.

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Key Considerations and Risks

Before investing in alternatives, it’s important to understand the tradeoffs:

• Liquidity: Many alternative assets are locked in for 3 months–10 years
• Transparency: Reporting and valuation may be less frequent than public markets
• Minimum investment thresholds: Some funds require $100K+ to participate
• Complexity: Understanding how returns are generated requires due diligence

That’s why it’s critical to have a Personal CFO and financial advisor in Calgary who can evaluate which alternative investments, if any, fit your goals, risk tolerance, timeline, and overall wealth management strategy

Book a complimentary strategy call to learn how alternatives could enhance your portfolio.

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