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Alternative investments

Photo of Stephen Roberts

Stephen Roberts

Vice President


“Adding alternative investments such as private loans, real estate and infrastructure may enhance our clients’ core portfolios from a risk and return standpoint that could lead to higher expected returns with similar or lower levels of volatility – which is ideal.”

As a client of CC&L Private Capital, you could have the unique opportunity to invest in up to five alternative asset classes. By investing alongside us, you can benefit from our experience as a leading alternatives investor, and can enhance your portfolio through alternative investments' superior characteristics.

Access to these asset classes has historically only been available to institutions and pension funds; now, by investing in alternatives, you could embrace a unique way to address today's challenging market environment.

Hedge strategies¹

Investing in hedge strategies adds diversification to your overall portfolio, providing the potential for enhanced returns relative to bonds. It has a low correlation with traditional equity and bond markets, with performance driven by our insights, not by market direction.

Our diversified portfolio invests in three complementary strategies.

  • The first strategy focuses on Canadian small-cap stocks, analyzing fundamental aspects of over 400 companies in the context of their industries and competitive environments. The strategy uses long and short investing to realize value.
  • The second strategy invests in Canadian, US, Swiss, UK, Australian and Japanese bonds, ranging from provincial to high yield.
  • The third strategy uses a quantitative approach to the global equity market, evaluating approximately 14,000 stocks across developed and emerging markets. The strategy uses long and short investing meaning returns are not correlated to equity market movements.

Private loans

The benefits of investing in private loans include stable, attractive yields compared to investments in bonds and improved diversification of your portfolio. Private loans investments are a well-established asset class globally but Canadian investors have had limited opportunities to participate.

Our private loan portfolio comprises loans to mid-market Canadian companies with loans typically secured by liens on the borrowers' assets. The portfolio provides an inbuilt inflation hedge resulting from basing the loans' interest rates on a floating rate and the investment team's active management improves principal protection.

Loans are diversified by loan type, industry and geography. Individual loan sizes typically range between $20-$60 million and loan terms are between 2-10 years.

Commercial real estate

Commercial real estate investments can provide cash flow with long-term appreciation, enhance your portfolio's diversification and act as an inflation hedge since most leases provide rental-rate escalation over time.

Our commercial real estate portfolio takes a fundamental approach, investing in well-located properties with sustainable income and attractive long-term growth potential. With investments across Canada, the portfolio is also diversified by sector and tenant type, including office buildings, industrial buildings housing light manufacturing or distribution warehouses, and retail locations. The portfolio aims to hold an equal weighting by value across office, industrial and retail properties.

The portfolio's average investment size is $5-20 million per property, and average property values range between $10-50 million.

Infrastructure

Infrastructure investments can lower the volatility of a balanced portfolio by limiting the exposure to economic cycles, while also providing partial protection against inflation since certain revenues are linked to consumer price inflation.

Our infrastructure portfolio provides exposure to small- and mid-sized traditional and energy infrastructure projects with long-term capital growth and stable cash flow characteristics. The portfolio invests alongside high quality development and operating teams, with typical investments including road, bridge, school and hospital infrastructure projects, hydro, wind and solar renewable power generation projects, as well as energy transmission and conservation projects.

The portfolio's average investment size is $5-75 million per project, and average project values range between $50-750 million.

Private equity2

Clients have the opportunity to participate directly in equity investments in private and public companies across various industries through Banyan Capital Partners, a part of Connor, Clark & Lunn Financial Group Ltd. Capital may be used to acquire ownership from existing security holders of private equity entities and/or to finance buyouts or future growth investment.

1 Hedge Strategies is an alternative name for the Private Client Multi-Strategy Portfolio.

2 Connor, Clark & Lunn Private Capital Ltd. has an administrative services agreement with Banyan Capital Partners, a division of Connor, Clark & Lunn Financial Group Ltd., to provide Connor, Clark & Lunn Private Capital Ltd. clients with opportunities to participate in various private equity investments created and structured by Banyan Capital Partners. However, Connor, Clark & Lunn Private Capital Ltd. does not act as investment manager to the client in respect of any investment by the client in such investments and Connor, Clark & Lunn Private Capital Ltd. does not make any suitability recommendations or give any investment advice for such investments. Connor, Clark & Lunn Private Capital Ltd. encourages all clients to review and consider all of the information provided by Banyan Capital Partners in respect of any private equity investment and to consult with their independent financial, legal and tax advisors before making an investment decision.

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