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Are Private Wealth Strategies Too Risky & Can You Lose All of Your Money?

Are Private Wealth Strategies Too Risky & Can You Lose All of Your Money?

These are the two biggest questions on every investors mind (especially if you don’t have a lot of investing experience).

The Private Investment Markets are very similar to the Public Markets in this regard because there are varying levels of risk in both. 

You may access the Private Markets via Private Portfolio Management companies which offer portfolios to suit any type of investor, from conservative (lower risk) to growth (higher risk).

In the Private Markets you also have access to the Exempt Market which is a much higher risk space.  It has the potential to deliver outsized returns but it’s important to assess your investor profile, i.e. your age, time horizon to retirement, risk tolerance and financial objectives before you ever invest there.

TO SUM UP

Investing does come with risks but with Private Wealth Strategies there are options to suit almost any type of investor – from low to high risk.

If you would like to learn more about Private Wealth Strategies and how they can benefit your portfolio, please contact me anytime.

 

P.S. If you’ve just landed on one of my posts for the first time and you want to start at the beginning…visit “Private Wealth Strategies – The Great Investing Alternative.”

 

 

 

 

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010

shannonpineau.com

 

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.

 

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Can Anyone Invest in Canada’s Exempt Market?

Can Anyone Invest in Canada’s Exempt Market?

That’s a good question – and the answer is no.  Not everyone is allowed to invest there.

That usually surprises people a little as they think, “hmmm… it’s my money, I should be able to invest it however and wherever I want.”  That is not the case in Canada’s Exempt Market though as there are restrictions when it comes to who can invest there – and also how much.  There are also very good reasons for these restrictions, which I will explain a little further in this post.

Overall, in order to invest in the Exempt Market, you have to be either “eligible” or “accredited”.

You can read a previous post here to refresh yourself about these two terms and see where you fall. (The post will also tell you about investing possibilities if you are not eligible).  What it boils down to though, is that the majority of investors fall into the same category…

Eligible Investors

Here is a summary of an eligible investor in Canada:

  • Net worth of $400,000 or more
  • Annual income $75,000+ for the last 2 years and/or
  • Household annual income $125,000+ for the last 2 years

If you are “eligible”, it means that you can’t invest more than $100,000 in a 12-month period in the Exempt Market.

(Now, there are all kinds of caveats here because we would need to determine many things before you ever invested in the private markets, just to make sure it’s “suitable” for you.  There are also recommendations as far as your overall allocation – but I will touch on these items a bit more later.)

For now, and for illustrative purposes though, those are the requirements to be an eligible investor and if you fit the bill, you can (likely) invest.

Accredited Investors

“Accredited” investors have an interesting history in the Exempt Market – and particularly over the last 20 years when the private markets became a little more mainstream and retail.

Once again, you can refresh yourself about the terms in a previous post but suffice it to say that “accredited” investors have a higher net worth than “eligible” investors and generally have no restrictions regarding how much they can invest in the Exempt Market or how often.  The general premise being that they have the financial knowledge necessary to make wise investment decisions and can evaluate a private investment offering accordingly.

The truth of the matter is though, that just because someone has reached accredited status, doesn’t necessarily mean that they know anything at all about the Exempt Market or have any experience there.

Over the last decade, I would venture to say that there were many accredited investors that were over allocated into Exempt Market investments – because they didn’t fully understand the Exempt Market itself or the higher level of risk involved. 

It is only through time and experience, particularly because the Exempt Market is still so new to the majority of investors, that we can see the best recommendations to make when it comes to private investing.  That’s also why it’s important to find an experienced Dealing Representative to work with.  They will understand the importance of treating an accredited investor, with little or no Exempt Market experience, with care.

Is the Exempt Market Suitable for You?

If you are eligible or accredited, you can invest in the Exempt Market but that leads to the next step in the process which is – determining if these types of investments are “suitable” for you.  This would involve some discussion of course but I’ll give you a general sense of the information I would be gathering, including things like:

– Your age

  – Your time horizon to retirement (or maybe you’re already there)

  – Your risk tolerance

  – Your financial objectives overall

All of these things help me determine if higher risk, Exempt Market investments are suitable for you and your portfolio and – if they are – how much you should invest there.

How Much Should You Invest in the Exempt Market?

For eligible investors there are strong recommendations that you not invest more than 30% of your overall investment portfolio in the Exempt Market, and of that 30%, no more than 10% with one private issuer.

This can vary though depending on your own circumstances and you might find that, once you understand the higher risk nature of the private markets, these percentages are much lower, and a private investment might not be suitable at all for your portfolio.

You may also find that, if you have many years left until retirement, these investments can be an excellent choice to fill the higher risk/(potentially) higher return portion of your portfolio.

To Sum Up

I’m sure there are times when you reach the end of my posts and feel a little trepidation about making a private investment in the Exempt Market.  And that’s okay because my goal is to educate investors and it’s always best to start the conversation with absolute clarity about the risks involved.

It’s higher risk, it is difficult to get your money back before the end of the term because there is no secondary market to sell your securities and private companies do go through restructures and some fail all together.

There are definitely losses that have happened and there will be losses again in the future.

 

BUT…

 

Always Leave on a Positive Note…

There are also excellent private investment opportunities in the Exempt Market, with well above average returns and profit-sharing opportunities available.  With higher risk comes the potential for higher returns and there have been many successful projects and funds that have done very well for investors. 

The most important thing is to work with an experienced professional in the industry that works for a very reputable Exempt Market Dealer.  This will go a long way to helping you understand the private markets, helping you find excellent investment opportunities, helping you find strong issuers that offer the investments and having a high level of diligence done on these issuers.

All of these items plus a good understanding of the Exempt Market as a whole will go a long way to ensuring your own success in private investing!

 

And on that note, I’ll tell you why I feel the Exempt Market is “One of Your Best Options to Make Higher Returns“.

 

I appreciate you reading my post and please contact me anytime.  I would welcome the opportunity to talk further.

 

 

 

 

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010

shannonpineau.com

P.S. “Who Can Invest in Canada’s Exempt Market” is a big topic and I didn’t touch on:

  • Eligibility requirements by province.
  • Foreign persons that live outside of Canada wanting to invest.

I will cover these topics in upcoming posts but you can always contact me to find out more.

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.
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How To Make an Exempt Market Investment Using RRSP or TFSA Funds

How To Make an Exempt Market Investment Using RRSP or TFSA Funds

Most Exempt Market issuers allow you to invest using registered funds.  This includes RRSP’s, TFSA’s, RESP’s, RIF’s, LIRA’s and LIF’s.

A common misconception among investors is that they will have to pay taxes on their registered funds if they use them towards an Exempt Market  investment opportunity.  This is not the case as the funds are transferred between accounts and never leave the registered umbrella.

Here is the process:

– We use Olympia Trust Company for all of our clients that want to use registered funds to invest.  Clients can now open a self-directed registered account online at Olympia Trust.

– Once the account is open, you can make a new contribution, transfer existing funds from another institution or a combination of the two.

– Once the required funds are in your account at Olympia Trust, then it is a matter of completing documents to make an Exempt Market investment.

– Olympia Trust charges an annual account fee of $175.00 + GST and then anytime you make a private investment there is a purchase fee of $75.00 + GST.

This brings us to the next question…

Should You Invest In The Exempt Market Using Registered Funds?

In the Exempt Market, everything comes down to suitability, meaning – Are these types of investments suitable for you and your portfolio?  There are many things to consider here including your age, your time horizon, your risk tolerance and your financial goals.

Contact me today and we can talk more about this and decide if the Exempt Market is suitable for a portion of your portfolio.

 

 

 

 

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010

shannonpineau.com

 

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.
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What To Do If You Experience a Loss In The Exempt Market

What To Do If You Experience a Loss In The Exempt Market

The Exempt Market is higher risk and so it can be expected that, at some point in time, you may experience an investment loss.  Whether it is a large or small investment though, losses can be very hard to deal with.

This is particularly true in the Exempt Market for a couple of reasons:

First, when an issuer runs into trouble, the losses can be quite significant.

Second, more often than not, losses can take a significant amount of time to realize.

With a stock, even if you are in a negative situation, you can still sell the stock and realize the loss.  You will likely still feel the same dismay at having lost money but it has happened and you can move on.  With private securities in the Exempt Market, the process can take a long time to wind everything down and crystallize what (if anything) you will be receiving back.  This tends to make it feel even worse because you continue to feel the loss through the whole wind up process.

So, if things don’t go as planned and you lose money in the Exempt Market, should you continue to invest there in the future? 

There’s a lot to take into consideration, and I’m here to help.

I’m going to lay it all out for you here – the pros, the cons – and then also make some recommendations based on your own particular situation.  After that, I feel you will be fully armed with the information you need to make an informed choice about your private investments.

FIRST STEP – REASSESS WHERE YOU ARE AT

Things change over time and it’s likely that your situation now is different than when you originally invested.  Here are 3 key things to consider right from the start:

YOUR FINANCIAL STATUS

It’s certainly possible that there have been some changes here, particularly related to the economy over the last few years.

This review is important both to determine if you have funds available that you’d like to invest and also to determine if your “eligible” or “accredited” investor status has changed.

YOUR CURRENT ALLOCATION TO THE EXEMPT MARKET

In the past, there were not a lot of guidelines here – for Dealing Representatives or Investors. There were no investment caps and no formal recommendations about how much an eligible investor should place in Exempt Market securities.  There was also not a lot of history yet to guide these decisions.

In today’s Exempt Market, the Exempt Market Dealers make these recommendations for investors and WhiteHaven Securities (my EMD) recommends that “eligible” investors not invest more than 30% of their net financial assets in private securities (and that amount can be much less).  And of that 30%, not more than 10% in one particular investment.

With these percentages in mind, we can figure out how much of your current portfolio is made up of Exempt Market securities and then adjustments can be made as needed.

YOUR CURRENT SITUATION & FINANCIAL OBJECTIVES

Some of the key things to look at here are your age, your time horizon for investing and your risk tolerance.

It’s important to reassess the first two if you are nearing (or in) retirement, and very important to reassess your risk tolerance. It may have changed now that you have experience in the market and have seen some of the challenges over the years.

MY RECOMMENDATIONS AT THIS STAGE:

Taking this all into consideration, and looking at your own personal situation, I would be happy to sit down with you and make recommendations any time at your convenience.

But even if you are just going to read this post, I think you will be able to determine yourself if your situation has changed significantly in any or all of the areas discussed above.  Here’s what I recommend:

If your allocation to the Exempt Market is higher than 30% or even just more than you are currently comfortable with, and/or you are in retirement and looking for shorter term investments with instant liquidity and much lower risk, it is time to start diversifying out of the Exempt Market.  (P.S. If you land in this category, you can stop here and reach out to me.  I’ll meet with you, we can look at your whole picture and find some solutions to re-balance.  You’re also welcome to read on though – particularly if you feel you might want to revisit the Exempt Market in the future).

If your current higher risk allocation is less than 30% of your overall financial portfolio, and you still have some years ahead to save for retirement, you may want to consider investing more in the Exempt Market. 

 

SECOND STEP – REASSESS YOUR OPINION OF THE EXEMPT MARKET  OVERALL

Even though you can invest more in the Exempt Market, after experiencing a loss, you might question why you would want to.

This is where I come in to help because I’ve been in the private investment markets for a long time and I believe I can put it all in perspective and also tell you about a lot of positive things that have happened over the years for investors:

THE FIRST THING TO REMEMBER IS THAT INVESTING HAS RISKS. INVESTMENTS LOSE VALUE OR FAIL.  INVESTORS CAN LOSE MONEY

This is true of almost any type of investment and particularly in a high-risk market.  There will be gains and there will be losses as this is the nature of investing.

FORTUNATELY, THE EXEMPT MARKET CONTINUOUSLY EVOLVES & IMPROVES

Private investing is still very new to the average “eligible” investor. Generally, the ability to invest privately became mainstream around 2005 – 2008 and then came back strongly in 2011/2012.  To read a very Brief History of the Exempt Market click here but suffice it to say that every failed issuer and investment leads to the market becoming stronger and more transparent for investors.

YOUR EXPERIENCE IS INVALUABLE

You’ve gained experience in a market that can be very lucrative and is still largely unknown. This experience will take you forward and help you evaluate new opportunities.

TODAY’S EXEMPT MARKET OFFERS ISSUERS THAT ARE EXPERIENCED WITH STRONG TRACK RECORDS

Nothing is ever guaranteed but in this ever evolving market, investors now have access to some of the best investment opportunities that are available in this higher risk space.

DIVERSIFICATION IS KEY

Spreading your capital out among several issuers helps to mitigate your risk. With multiple, strong, experienced issuers in this market now, that is easier to do.

TODAY’S EXEMPT MARKET OFFERINGS HAVE A LOT MORE OPTIONS

Regular returns

Early redemption options

Various terms

Different industries instead of such a huge focus on real estate

YOU HAVE AN EXPERIENCED DEALING REPRESENTATIVE WHO WORKS WITH A STRONG EMD

This becomes extremely important as time goes on. A strong EMD will perform extensive diligence on the issuers and investments and have a track record to prove that.  An experienced Dealing Rep will have seen all sides of the Exempt Market and will always work in your best interests.

MY RECOMMENDATIONS AT THIS STAGE:

If a higher risk product is still suitable for a portion of your portfolio – the Exempt Market is, in my opinion, one of the best places to find the higher returns you’re looking for.  Here’s why.

TO SUM UP

Any type of investment loss can be hard to take but hang in there, reassess, re-evaluate and let me help you find the best opportunities to take your portfolio forward to retirement.

I really appreciate you reading my post!  If you would like to talk further, with no obligation, please contact me today.

 

 

 

 

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010

shannonpineau.com

 

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.
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What Is One Of Your Best Options To Make Higher Returns?

What Is One Of Your Best Options To Make Higher Returns?

Almost everyone, at some point in time, wants to make higher returns on their investments.

The Usual Suspects

For most average or “eligible” investors, investing generally involves one or more of the following:

• Setting up a RRSP or TFSA account at a bank and investing in mutual funds
• Investing in stocks through a broker
• Setting up a discount trading account and buying and selling your own stocks
• Having a pension at work
• Having a RRSP savings program through work

There is nothing wrong with any of these strategies. They all have pros and cons but ultimately, they are helping you save money towards your goal of a great retirement. That is excellent in my books.

With employer plans, they generally hold the reins and their goal is to do well for you, so you can likely just sit back and let that happen. For personal registered accounts, you have a lot of choices for what you can invest in and generally, at some point in time, investors go looking for higher returns if they are not achieving the results they are hoping for with mainstream investment products.

Starting The Search

When you start looking for higher returns on your money – and by higher returns, I generally mean in the 7% + range – there are all kinds of different options that you can pursue. Things like:

• Stock related opportunities like day-trading, options, futures, penny stocks etc. There is nothing wrong with this it just takes time to learn about and more often than not, novice investors lose money based on emotion or speculations that don’t pan out.

• Investment real estate. I really like this strategy because I think it’s an excellent one that can generate some great wealth over time. There is a big learning curve here though and being a landlord comes with challenges so there is a lot to consider. A sound strategy though if you can take the time to learn.

• Investments in real estate projects found in other countries. There is a lot of opportunity to be found in some of these places, but things can change in a hurry as regulation can be sparse and plans can be difficult to execute.

• Investing with close family, friends or business associates. This can often work out well for accredited investors that are in the know and have larger sums to invest in sound projects. For the average investor though, investing with a smaller player, these often do not go as planned. Rather than the double digit returns that were promised, there are often strained relations instead.

• Multi-level marketing. This usually works out well for the person at the top and the super social. For most people though, it’s hard to make it off the bottom rung and easy to alienate friends and family.

• Get rich quicker scenarios. These come in all shapes and sizes and are always lurking out there for anyone that is searching out ways to make more money. Investors always need to be wary – particularly if something seems too good to be true.

So then what should you invest in that can possibly give you higher returns?

In my opinion – you should look straight to Canada’s Exempt Market and here are the reasons why:

• From a risk reward perspective – it is higher risk and that’s why the prospective returns are so much higher. But here, those risks are very transparent and well explained.

• It’s well regulated and within a safe country that takes its regulations very seriously. To learn more about this and how the market has evolved through years to get to this point – click here.

• In order to offer an investment to clients, issuers have to be accepted by an Exempt Market Dealer. The EMD conducts a rigorous diligence process on the issuer to ensure they are a strong company with a sound plan and a great likelihood of success.

• Issuers that I have offered in the past that have paid out their investors have averaged approximately 8-10% annual return over the life of the investment.

• I am here for you. I’ve worked in the private investment markets since 2007 – I will make sure you understand everything there is to know about the Exempt Market and then help you decide if it is the right fit for you.

But is it Guaranteed?

So with all of these benefits – there must be some guarantee of success right?

NO!

There is absolutely no guarantee. It is a higher risk market and even with all of these safeguards, things can and do go wrong and investors can definitely lose money. It’s important to discuss all of this in the beginning to ensure that the Exempt Market is a good fit and also ensure you allocate the proper amount there.

On the other side of the coin though (and the reason investors continue to invest in the private markets), if you are well diversified across a few quality issuers, there is excellent opportunity for you to achieve the returns you are searching for. When we meet in the future, we’ll look at issuer results to date which will help to illustrate all of this for you.

There you have it. There are a lot of options out there to try and make higher returns on your investment but if you are looking for one of the most regulated, easiest to understand and safest (in a high risk space) places, along with a Dealing Rep that will help you every step of the way – you should definitely consider the Exempt Market.

 

We’ve reached the end of my posts in the Exempt Market Category of my blog but there’s still more to learn if you’re interested!  Because the Exempt Market is higher risk, it is generally only suitable for a smaller portion of your portfolio.  What about the rest you may ask?  There are options for all different types of investors and I invite you to start at “Private Wealth Strategies – The Great Investing Alternative.”

 

I really appreciate you reading my post!  If you would like to talk further, with no obligation, please contact me today.

 

 

 

 

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010

shannonpineau.com

 

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.
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THE EXEMPT MARKET – Why Is It Called That?

The Exempt Market – Why Is It Called That?A big question mark

The “Exempt Market” is a relatively new term for investors and many aren’t even sure what it means. In the past we referred to it as the “private” or “alternative” market and many of the companies involved were doing real estate-based investments.

It All Starts With The Prospectus

To explain the Exempt Market in simple terms – if a business in Canada wants to raise capital they generally do so through a prospectus offering.  Most people will have heard this term in the past and I’ve included a lengthier definition link for anyone who hasn’t.

Basically, a prospectus details everything about the business itself and the securities they plan to offer to the public.

Doesn’t Everyone Use a Prospectus If They Want To Raise Capital?

To sell securities under a prospectus is very costly and onerous and not all businesses want to raise capital in this manner. Smaller, private companies that are looking to expand may not want to take on the process, time frame or expense of creating a prospectus. There are also many companies that want to raise capital but have no interest in taking their business public.

So, If a Privately Owned Company Wants to Raise Capital but Doesn’t Want to File a Prospectus, What Can They Do?

 

They can rely on an “exemption” to the prospectus requirements.

The most common exemptions include:

 – Selling only to accredited investors

 – Selling only to family friends and business associates

 – Selling a minimum of $150,000.00 per transaction

 – Issuing an Offering Memorandum (which allows “eligible” investors to participate – more on that in another post)

To Sum Up

Companies that raise capital from investors using one of these prospectus “exemptions” make up the Exempt Market.

Another question you may have on your mind is “Why Haven’t I Heard of the Exempt Market Before?”  Click through to find out!

 

I really appreciate you reading my post!  If you would like to talk further, with no obligation, please contact me today.

 

 

 

 

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010

shannonpineau.com

 

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.
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Top 5 Exempt Market Quotes

Top 5 Exempt Market Quotes

As I attempted to gather some quotes about the Exempt Market, it turns out – there aren’t any!  Instead, here are some great quotes about private equity which, fortunately, is what the Exempt Market is all about.  Enjoy!

 

 

 

 

 

 

 

 

 

If you’d like to talk more about the Exempt Market and how private equity opportunities can help diversify your portfolio – please contact me today!

 

 

 

 

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010

shannonpineau.com

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.
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The Exempt Market – Finding “Opportunities” For Your Portfolio

The Exempt Market – Finding “Opportunities” For Your Portfolio

Hello, I’m Shannon Pineau…

and I’m a Dealing Representative with WhiteHaven Securities Inc. – an Exempt Market Dealer.

Now if that just made sense to you, you can likely jump ahead in my blog posts a little but if you’re like most – you may not know a lot about private investing in the Exempt Market in Canada. And that’s just fine because that’s what I’m here for – to tell you all about it.

When you start looking for options to fill the higher risk “opportunity” portion of your portfolio – you’ll soon find that there are MANY options to choose from.  From higher risk stock market plays, to foreign real estate investments, to network marketing, to investing in a friends & family venture, to various “get rich quick” schemes…there are no end to the possibilities.  Unfortunately,  the majority of investors don’t have the time or the expertise to properly investigate these opportunities which can often lead to losses and an overall bad taste for higher risk investments.

There is a much better alternative though, and that is the Exempt Market.

Throughout my blog, I will cover all kinds of topics to explain the Exempt Market – in layman’s terms – and I will try to keep it short, sweet and interesting.

Depending on your level of investing experience, you can decide how much time you want to spend in the Exempt Market 101 category. For those that are new to private investing overall, I really think this will give you a great introduction and for those who are more experienced, there will be lots of other topics to follow.

If  a higher risk/potentially higher reward investment is suitable for your portfolio – my goal will be to give you all of the information you need to consider the Exempt Market.

Armed with this information:

a) you can find those higher returns
b) you can clearly see the risks and rewards involved in achieving those higher returns

And back to my “most people don’t have a lot of time” point – I also want to make sure you can find everything you need in one place.

Canada’s Exempt Market can be a great place to find those excellent investment opportunities that haven’t always been available to the average investor – BUT – there’s more to the story!  If you want to continue on through all of my Exempt Market posts you can click on to the next one, “The Exempt Market – Why Is It Called That?”

I am very happy to have this strategy to offer to my clients.  If you want to talk more specifically about the Exempt Market issuers that I offer through my EMD, WhiteHaven Securities – contact me.

Thanks for reading!

 

 

 

 

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010

shannonpineau.com

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.
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Why Consider Private Wealth Strategies?

Why Consider Private Wealth Strategies?

 

The Private Wealth Strategies that I have available generally fall into two categories:

 – Private Portfolio Management companies that have varying levels of risk and can manage the bulk of your portfolio.

 – Exempt Market offerings that are higher risk but offer the potential for higher reward and can potentially make up a smaller portion of your portfolio.

Private Wealth Strategies are not mainstream, and it can be a little more difficult to find an experienced professional that works in the Private Investment markets to explain everything to you.

So why go through the effort you wonder to yourself?  What do Private Wealth Strategies have to offer that can make it worthwhile?  Why do investors go the extra mile to find and invest in these kinds of products?

 

To try and make more money of course! 

 

It’s almost every investor’s goal and it can mean more than just finding an investment with projected, overall higher returns.  With all of the volatility in the public stock markets today, Investors are also looking for diversification in their portfolios which they hope will also lead to some consistency in their returns.

Private Wealth Strategies can potentially help investors achieve these goals in a few key ways:

– With Private Portfolio Management you have experienced private companies that can use alternatives in their portfolios to achieve downside protection. This can lead to solid and more consistent returns for clients over time.

– In the Exempt Market, you have higher risk for potentially much higher than average returns. There are many factors to consider here before ever making an investment but overall, this is a well-regulated space with quality issuers which can make it a good choice for a smaller portion of your portfolio.

 

To Sum Up:

Apart from a few guaranteed investing products that generally pay very low interest, investing comes with risks and there are no guarantees.

Overall, I would say that investors want to earn good returns on their investments so they can live well today and also fund (or maintain) a great retirement.

It’s always easiest to stay in mainstream, traditional investments to try and achieve your financial goals but it has been my experience that mainstream investments often equal mainstream results.

 

By searching a little further you have found the Private Investment markets and you’ve also found an experienced professional that can help you navigate them.

Please contact me anytime and I look forward to talking more about your financial goals.  I’ll explain private investing to you in an easy to follow format and then we’ll look at the Private Wealth Strategies that I offer and see if they can add some great benefits to your portfolio.

 

Thanks for reading!

 

P.S. If you’ve just landed on one of my posts for the first time and you want to start at the beginning…visit “Private Wealth Strategies – The Great Investing Alternative.”

 

 

 

 

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010

shannonpineau.com

 

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.
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Private Portfolio Management – Building the “Foundation” of Your Portfolio

Private Portfolio Management

Building the Foundation of Your Portfolio

 

Portfolio Management – An Overview

As your wealth continues to grow over time, more sophisticated investment options become available to you and you begin to have access to the same portfolio options as high net worth and institutional investors.

These higher net worth and institutional investors have access to professional Portfolio Managers who make investment decisions based on a client’s goals and objectives.

Discretionary Portfolio Management is offered at all the major banks and financial institutions and generally becomes available to investors when they have a minimum investment portfolio amount of $200,000.

 

PRIVATE Portfolio Management

Private Portfolio Management companies, on the other hand, are found outside of the major banks.  These are large private firms that manage the assets of some of Canada’s wealthiest families.

There are many benefits to Private Portfolio Management and the following will explain why I feel this is an excellent place for my clients to build the “foundation” of their portfolio – as an alternative to traditional investment types.

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Private Portfolio Management – The Benefits:

 

Potentially Higher Returns

Private Portfolio Managers have access to unique, alternative investment strategies which can give them an edge in the marketplace.

This in turn allows them to achieve greater downside protection for their clients…

Downside Protection

With typical investments that follow the markets, a profound loss can be hard for investors (particularly retirees) to recover from.

It’s important to hire a Portfolio Manager that historically has proven to shelter client portfolios in challenging markets.

Downside protection can lead to more consistent returns over time.

More Consistent Returns

The public stock markets can experience a lot of volatility.

Private Portfolio Managers have shown their ability to offer a more consistent return for their clients which is important as you grow your portfolio and also as you draw on funds through retirement.

Excellent Companies Available

There are strong companies available with long track records of results for their clients.

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To Sum Up

I hope this has been a helpful summary to explain some of the benefits of Private Portfolio Management.  This can be an excellent, alternative option for the “foundation” portion of your investment portfolio.

I am very happy to have this strategy to offer to my clients.  If you want to talk more specifically about the Private Portfolio Managers that I offer through referral, and their performance to date – contact me.

Thanks for reading!

 

P.S. If you want to learn more about Private Wealth Strategies in general, I invite you to read my post “Private Wealth Strategies – The Great Investing Alternative“.

 

 

 

 

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010

shannonpineau.com

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.
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