What is Alternative Investing | Skyline Wealth

What is Alternative Investing?

According to Forbes.com, the category of alternative investing “spans everything from private equity to mutual funds to ETFs – from liquid types of investments to illiquid types of investments – from those that require investors be qualified (meeting certain income and net worth requirements) to those that don’t.”

Simply put, alternative investments are investments in assets other than stocks, bonds, or cash, or are defined as a complicated asset. Alternative investments are commonly perceived as illiquid; however, they can come with their own host of benefits—often including higher returns than publicly-traded funds can offer.

Examples of alternative investments include:

  • Commodities
  • ETFs and Mutual Funds
  • Hedge Funds
  • Infrastructure
  • Private Equity
  • Real Estate Investment Trusts (REITs)

Why do people invest in alternative investments?

There are many reasons why people invest in alternative investments. Most commonly, alternative investments are seen as a way to differentiate against possible downturns in the valuations of traditional investments (they may provide a buffer from volatile movement in the public markets). While alternative investments are not often used to replace an entire investment portfolio, they can be very valuable as a portfolio enhancer.

Alternative investments often require investors to meet certain “exemptions,” or criteria, in order to be eligible to invest. To this point, they also may require a larger amount of investment capital. Although alternative investments are not regulated by the same standards as publicly-traded investments, a trustworthy alternative investment fund will happily provide transparency to its investors in terms of offering documents and business operations strategy.

 

Visit Skyline Wealth’s alternative investment products page to learn more about the private equity investments we offer.

The information provided within this Website is for general information purposes only, and does not constitute an offer of, or solicitation for, the purchase and sale of any securities, or advice under any circumstances. Skyline Wealth Management Inc. (“Skyline Wealth”) is an Exempt Market Dealer registered in the provinces of Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Québec, and Saskatchewan. Important information with respect to the funds are set out in their confidential offering documents, which should be reviewed prior to investing, as they include important information on fees and risk factors. There is no active market through which the securities may be sold, and redemption requests may be subject to monthly redemption limits. The payment of distributions is not guaranteed and may fluctuate. The payment of distributions should not be confused with an exempt market product’s performance. Distributions paid as a result of capital gains realized by an exempt market product, and income and dividends earned are taxable in your hands in the year they are paid. Your adjusted cost base will be reduced by the amount of any returns of capital. If your adjusted cost base goes below zero, you will have to pay capital gains tax on the amount below zero. Prospective investors must make an independent assessment of such matters in consultation with their own professional advisors. Sales of interests in any investments offered by Skyline Wealth are only made to certain eligible investors pursuant to regulatory requirements and available exemptions. Some of the investment products offered by Skyline Wealth are from related issuers. A full list of issuers related to Skyline Wealth and details of the relationship between them is available upon request. Information provided herein is current as at the date of publication and Skyline Wealth does not undertake to advise the reader of any changes.