WHY ALTERNATIVES?
JOIN HOW THE WORLD INVESTS
IT’S TIME FOR
INVESTING TO EVOLVE
Innovation has always made the world better, shaping how we live, work, and connect. Yet investing has been slow to evolve, with most portfolios still concentrated in traditional mutual funds. Alternatives bring innovation directly to investing, modernizing the way portfolios are built. By combining high-value alternative strategies with low-cost ETFs, portfolios can become more diversified and resilient, helping investors move forward with greater certainty.
MARKETS ARE BECOMING INCREASINGLY VOLATILE WHILE STOCKS AND BONDS ARE BECOMING MORE CORRELATED
GLOBAL ALLOCATIONS TO ALTERNATIVES CONTINUE TO GROW
The global alternatives market is expected to reach $30 trillion (USD) by 2030, yet Canadian portfolios are lagging behind global portfolios. By aligning with global trends, Canadian investors can unlock the diversification, risk management, and resilience alternatives can offer.
LIQUID ALTERNATIVES CAN OFFER INVESTORS OPPORTUNITY TO INVEST LIKE INSTITUTIONS
Historically offered to institutions and pension funds, the introduction of liquid alternatives now provides Canadian investors with access to strategies used by institutional investors. Compared to institutional investors, investors are still heavily concentrated in traditional assets (stocks & bonds), with just approximately 5% allocated to alternatives.
ALTERNATIVES CAN OFFER KEY BENEFITS
TO YOUR INVESTMENT PORTFOLIO
THE BOTTOM LINE:
ALTERNATIVES CAN CAPTURE GROWTH IN UP MARKETS AND AIM TO PROTECT IN DOWN MARKETS
Capturing 70% Upside & 50% Downside of the Market is approximately 140% Upside & 50% Downside Over Time
WHILE AIMING TO REDUCE SHORT-FALL DECUMULATION RISK
Sequence of returns can impact early losses making it harder to recover, no matter your life stage. Portfolios fortified with alternatives can have less shortfall risk and experience smaller drops during volatile markets.
The world is evolving and with new forms of investments, like alternatives, you now have an opportunity to evolve the way you invest. Alternatives can be essential to building portfolios that are better equipped for today’s risks and tomorrow’s opportunities. By integrating alternatives, Canadian investors can join a more advanced global approach, one that strengthens diversification, helps manage volatility, and aims to support more consistent outcomes.
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This material has been published by Picton Mahoney Asset Management (“PICTON Investments”) on August 20, 2025. It is provided as a general source of information, is subject to change without notification and should not be construed as investment advice. This material should not be relied upon for any investment decision and is not a recommendation, solicitation or offering of any security in any jurisdiction. The information contained in this material has been obtained from sources believed reliable, however, the accuracy and/or completeness of the information is not guaranteed by PICTON Investments, nor does PICTON Investments assume any responsibility or liability whatsoever. All investments involve risk and may lose value. This information is not intended to provide financial, investment, tax, legal or accounting advice specific to any person, and should not be relied upon in that regard. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.
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