Opening the Door to a New Era of Private Investment Opportunities
Questions and Answers with Ian Mellott, CEO of DIAM Capital Markets Inc.
Published in My Business magazine 19 May 2016
Once the exclusive domain of institutional and high net worth investors, recent legislation in Ontario has opened the door to private capital markets investing to everyone. By accessing the vast potential of private investment markets, retail investors can now diversify their investment portfolios beyond stocks, bonds, and mutual funds.
Although typically illiquid (your money can be tied up for as long as ﬁve years or more), these investments can, and often do, provide superior returns. For example, The Yale Endowment Fund uses alternative investment products to improve its returns. The $24 billion Endowment Fund invested most of its money in real assets, and in alternative investments like private equity and hedge funds. Since its inception more than twenty years ago, the Fund has enjoyed an average rate of return of 13.9% a year. Only you and your Financial Advisor can decide if the lack of liquidity is worth the potential reward.