Investment Options
As a full-service brokerage firm, we access a wide range of investment vehicles on a global basis. Below is a range of investment vehicles we offer.
- Individual Securities – Common Stock & Preferred shares, REITs, Bonds
- ETFs (Exchange Traded Funds)
- Private Debt
- Private Equity
- Private Real Estate
- Mutual Funds, Closed & Open
- Creditor Protected Investments
- GICs (Guaranteed Investment Certificate)
- High-Interest Savings Accounts
We reiterate the saying COMPLEXITY SIMPLIFIED in order to remind ourselves and our clients what the goal at hand really is. We are here to help navigate the complexities of wealth management and instill true confidence into those we serve.
Investment Philosophy
Harbourfront Belief
With a low-interest rate environment, investors can no longer turn to cash or near cash investments as a means to build and retain wealth. Over time income tax implications and inflation erode capital. The opposite extreme of aggressive equities is also an approach which we don’t favor.
Clients will typically experience 5-7 economic market cycles before transferring their wealth. Trying to time these cycles is a futile exercise and so we prefer to prepare rather than react.
Our belief as such is that more can be achieved through efficient portfolio construction. By quantifying risk through back-tested portfolio analyses while comparing with past and projected returns, we have been successful in capturing strong returns during periods of market growth and preserving more capital during economic contractions.
Security Selection
As investors, we must remember that a stock or bond is issued by an underlying business. When selecting securities we ask ourselves a number of questions. Do we feel that this company will be in business and have paying customers regardless of various economic environments? Do we feel that this company has a competitive advantage within its industry & do we feel it is likely to grow its business? Does the company have a strong management team and has it been consistent in growing its earnings? Despite different economic periods, conflicting political views & civil unrest, human beings will always need certain goods and services. By investing in the companies that provide the products and services we just can’t do without, we will benefit from these businesses’ long term productivity.
How We Feel About Income
In addition to seeking capital appreciation, we see income as another form of profit. Whether our clients need a regular stream of income or prefer not to draw from their portfolio, tax efficient income based investing forms part of our portfolio construction efforts.
We believe that income based investing also contributes to our clients’ risk management plan. A regular stream of income reduces overall volatility while also returning the initial capital investment over time.
Private Asset Classes
While pension & endowment funds recognize the importance of diversification by including private debt and real estate in their portfolios, retail investors have a difficult time accessing alternatives to stocks and bonds. Private debt and real estate may provide portfolio stability and offset the volatility in equity and fixed income markets.
Faced with increasing interest rates, investors are struggling to find yield without increasing risk as traditional bonds no longer work. Pension and endowment funds have been shifting from publicly traded fixed-income investments to private debt to enhance returns.
Harbourfront has the solution giving clients access to institutional investments with unparalleled security and diversification with the liquidity of a retail mutual fund.
Goodbye 60/40
High-interest rates during the 80s and 90s supported the case of the “balanced” portfolio. Today, volatile equity markets coupled with increasing interest rates and low return bonds have created headwinds for the investment community.
Hello 40/40/20
Factoring and Real Estate, Mortgage Investment Corporations and Bridge Loans may provide portfolio stability with equity type returns.
Unified Managed Accounts
Why Watermark Private Portfolios?
The Watermark Private Portfolio Program is a Unified Managed Account using a multi-strategy, total portfolio solution consisting of stocks, bonds, ETFs, and managed investments all in one account. The benefits of utilizing the Watermark Private Portfolios are extensive. Certain offerings are for qualified investors only.
Why Watermark Private Portfolios?
Ability to hold securities from multiple managers all in one account.
World Class Reporting
Comprehensive investment report which includes market commentaries, investment performance, performance attribution, portfolio activity with activity rationale.
Access to Alternative Investments
Access to investments generally available exclusively to accredited individuals regardless of your investor status. Examples include private lending pools, real estate pools, etc.
Householding
Simplify your portfolio reporting by including all family accounts as well as corporations, trusts, etc. into one quarterly report.
Asset Allocation
The Watermark Private Portfolio Program is designed for long-term investors who wish to build wealth by following an investment plan that may include an allocation to alternative assets.
When it comes to investing, the biggest challenge for investment advisors and their clients is finding a core investment solution that provides the opportunity for strong and predictable returns while managing the variability associated with the ups and downs of stock markets. And while investors understand the advantages of long-term investing, in practice, most investors have a tough time accepting and dealing with the volatility associated with investing in specific asset classes.
Tactical Asset Allocation takes a more dynamic approach and seeks to systematically identify and respond to market trends. This offers the flexibility to invest in a wide range of asset classes and the opportunity to provide meaningful diversification and better risk management measures designed to provide smoother, more predictable returns and a better overall investment experience.
Active portfolio managers move money between different asset classes (cash, fixed income, and equity) to improve risk-adjusted returns:
- Weaker equity markets – Look to overweight fixed income/cash
- Stronger equity markets – Look to overweight equities
Core Positions
Core holdings in one or more portfolio pools will make up the bulk of the assets. Other investments may compliment core holdings and may allow for tactical investment decisions for movement between asset classes and to provide diversification between asset classes, sectors and geographical regions.
- Alternative Fixed Income: Exclusive to Harbourfront clients, the Rockridge Private Debt Pool provides consistent cash flows and enhanced returns.
- Private Real Estate: Exclusive to Harbourfront clients, the Forsyth Private Real Estate Pool provides consistent cash flows, generally higher than those available through traditional bonds and/or bond proxies.
- Equity: Multiple core equity and/or balanced pools can be held in the Watermark Private Portfolio Program depending on the portfolio model selected. These pools are designed to give investors the ability to participate in upside during periods of equity market expansion and more importantly, protect capital when markets are not performing well. Most pools also have the ability to move in part or entirely to cash, and/or fixed income and/or commodities, etc. to protect capital.
Is My Money Safe?
The Investment Industry Regulatory Organization of Canada (IIROC) is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. IIROC sets high-quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.
Harbourfront is a member of the Canadian Investor Protection Fund. By having an account with Harbourfront you have automatic CIPF coverage. CIPF is sponsored by the Investment Regulatory Organization of Canada (IIROC) and is the only compensation fund approved by the Canadian Securities Administrators for IIROC Dealer Members.
National Bank Independent Network is Harbourfront’s custodian for client assets. Client accounts are held with NBIN, a division of National Bank Financial. National Bank is a chartered bank, as well as one of Canada’s oldest financial institutions and the largest provider of back office support for IIIROC firms. Currently, NBIN manages 160 billion in custodial assets.
Contact Us
If you have any questions or inquiries for us or would like to set up a meeting, please do not hesitate to reach out. We would love to answer any questions you may have in order to help you better understand the process.
