Overview

At Chartwell Asset Management, one significant input to the design of our investment strategy is the investment strategy and asset allocation of the large university endowment funds such as Harvard and Yale. The university endowment funds at Harvard and Yale have been leaders in diversified multi-asset class investing for over two decades. Through this approach to investing and their exposure to alternative asset classes they have consistently achieved high double digit annual returns with low risk and only moderate drawdowns. By adopting similar asset allocation principles it is possible for smaller investors to also obtain high returns with lower risk which is superior to the traditional bond/equity portfolios and most balanced investment funds.

In addition, the traditional bond returns are so low that it is not possible for conservative investors to achieve their goals with these investments. The public stock market is currently so completely driven by fear and the banking system is so fragile we find traditional buy and hold investing in publicly traded stocks to be far too risky to place a significant amount of our clients’ investments at this time.

Consequently we have significantly diversified the asset classes in which we invest our clients’ funds. They include:

  • Alternative fixed income pools (Magna High Income Fund)
  • Life settlements (contractual obligations of US insurance companies) (Magna Life Settlement Fund)
  • Small commercial real estate properties in western Canada (Magna REIT)
  • Equity strategies dependent on market conditions (Magna Opportunity Fund)