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iA Financial Group continues to innovate by adding direct alternative investments to the ATTITUDE portfolios

Group Savings and Retirement June 18, 2020
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As you know, several enhancements have recently been made to the ATTITUDE portfolios, our life cycle investment solution. These changes include, among other things, the addition of new direct alternative investments.

 

Advantage of direct alternative investments

Presenting unique characteristics, direct alternative investments are receiving increasing attention in the Canadian pension industry. Previously reserved for institutional investors, direct alternative investments have become an important component of pension plan investment strategies, mainly because of their low correlation with traditional investments.

In the current low interest rate environment, direct alternative investments provide a steady flow of income and have historically provided stable long-term returns, while offering strong diversification and reducing portfolio volatility. 

iA Financial Group was among the first in the Canadian capital accumulation plan market to offer direct alternative investments. Our intention is to continue to help plan members maximize their financial well-being in retirement by providing them with the opportunity to take advantage of the latest developments in the investment market.

Here are a few examples of direct alternative investments included in our ATTITUDE portfolios:

Our confidence in alternative investments and our expertise in asset management led us to create the following two innovative funds. We have also brought in reliable and recognized alternative investment managers.

 

Why combine several asset classes and investment managers?

  • Enhanced portfolio management capabilities for buying and selling alternative investments through a diversified set of opportunities
  • Increased liquidity options
  • Better diversified portfolios

 

Key elements to know

  • Alternative investment funds always represent 15% of the portfolio. The composition of the portfolio will gradually change over time depending on the plan member's target retirement date and risk tolerance.
  • To manage investment risk and benefit from attractive returns, plan members with a longer investment horizon will benefit from the growth of their savings through the Diversified Alternative Fund. As they approach retirement, the composition of their portfolio will become less risky thanks to the Diversified Alternative Fixed Income Fund.
  • The Diversified Alternative and Diversified Alternative Fixed Income Funds can also be used in the composition of customized life cycle portfolios.

 

About iA Investment Management (iAIM)

With more than 100 investment professionals, over $100 billion in assets under management (as at December 31, 2019), iAIM is one of the 15 largest investment firms in Canada. iAIM's expertise is diversified and covers the full spectrum of investments, including alternative asset classes. For many years, iAIM has been increasing its stakes in alternative investments, primarily through iA Financial Group's general fund. iAIM has built a solid foundation for alternative investment management by creating specialized teams of seasoned investment experts and establishing strategic partnerships around the world. Today, iAIM manages major investments in direct infrastructure, direct real estate, private debt, private equity and real estate debt.

 

 

Want to learn more?

Register now for our ATTITUDE portfolios webinar.

Thursday, June 25, 2020, at 1 pm (ET)

Registration

 

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