Our Investment Approach
At Turnstone Wealth we believe that most Canadians who are building wealth, managing the tax implications of their investments or investing in their corporations, benefit by including alternative investments. We have partnered with Raintree Financial Solutions, an award-winning Private Capital Market Dealer to offer a distinct set of investment solutions for our clients.
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We recommend direct investments in a variety of private companies that are not publicly traded
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We refer our clients to discretionary Portfolio Managers
Why Consider Alternative Investments?
Portfolio Diversification
Alternative investments introduce non-correlated assets, which means their performance is not directly tied to the stock market. This diversification has the potential to help reduce overall portfolio risk and enhance returns.
Potential for Higher Returns
Alternative investments have the potential to deliver attractive returns that may outperform traditional investments in exchange for higher risk.
Hedge Against Inflation
Certain alternative investments, such as real estate or commodities, have the potential to act as a hedge against inflation. These assets tend to maintain or increase in value as inflation rises, preserving your purchasing power.
Access to Exclusive Opportunities
Alternative investments provide access to markets and sectors that are not readily available through traditional channels. This exclusivity enables you to tap into emerging industries, private equity deals, real estate ventures, and more.
The Raintree Approach to Alternative Investments
The team of experienced analysts at Raintree Financial Solutions reviews a wide range of alternative opportunities and conducts extensive due diligence on each approved offering by rigorously assessing the potential for growth, risk factors and structure. For more information and details about our current private investment offerings please visit:
Overview
When families are introduced to Turnstone Wealth, we provide a fresh set of eyes and a thoughtful analysis of their current investment and overall wealth strategy (tax, estate, insurance, business succession, retirement, charitable giving, etc.).
We favour strategies, that at their heart, aim for a less volatile ride and strong long-term results in your investment portfolio. We believe this is best accomplished by an actively managed public portfolio with a basket of private and alternatives that have a strong focus on downside protection, managed by a discretionary portfolio manager. We commonly see investment strategies that are over-diversified and under-strategized. Your portfolio does not need to be excessively complicated to be successful. Even the largest pools of capital benefit from a fine balance of sophistication and simplicity in their portfolio construction.
Sophisticated & Simple
We help you be focused and strategic in weaving together the different elements of your wealth plan. For part of your portfolio, we introduce discretionary Portfolio Managers, which we believe will manage your money to meet your goals. These firms directly manage your investments, actively rebalance or tactically invest, and provide ongoing transparent reporting to you. They share similar philosophies to us around managing and measuring volatility in your portfolio. We work alongside you to ensure that you are getting high quality hands-on service.
Why Downside Protection Matters
Public market investments generally go up but sometimes they correct or go down. When this happens portfolio values drop and then it takes some amount of time to get back to the previous value. For example, if you have $100,000 and the markets and your portfolio drop by 30% that leaves you with a portfolio value of $70,000. To get back to $100,000 you will need MORE than the 30% that you lost because a 70K portfolio that grows by 30% equals $91,000. To get back up to $100,000 you would need a return of 43%.
As a result of this math, a portfolio that drops only half as much as the broader market will get back to the before-drop value much faster than a fully exposed portfolio. If you manage the downside well you will not need to take on the full market risk during the good years to have a well performing portfolio because you will spend more years above par than the typical investor.