WEALTHCO. ASSET MANAGEMENT

FIRST QUARTER 2020

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First Quarter Highlights

  • The Potomac Shores LP made a large distribution in Q4 following the sale of developed single-family lots near Washington, Virginia. The partnership has acquired all remaining lots, and final distributions will be made following the final sales. This investment is on track to generate a rate of return in the high teens for the Alternative Income fund. 

  • Phase 1 of the Spartan Ridge Industrial project in Spartanburg, South Carolina was sold in Q4. With the proceeds from sale we invested in Spartan Ridge Phase 2 and the ICM Mexico Real Estate Opportunities LP – our first international real estate equity investment. 

  • The Trez Capital US Opportunity #2 LP made a significant distribution to its limited partners following the completion and sale of the Winding Creek garden apartment project in Grande Prairie, Texas. The WealthCo funds also had direct exposure to this project through a mezzanine debt investment made in the Alternative Income Fund. Some of the proceeds were reinvested in the Trez Capital US Opportunity #5 LP. 

  • The Tsawwassen Partnership reduced its fair value estimate for the Tsawwassen Commons retail real estate project in Q4. The project faced several challenges including weak big-box retail real estate markets, slow lease-up, and construction delays on future phases. The partnership is now exploring recapitalization or sale. 

Keep long-term goals in mind

In retirement, most people plan to live off their pension investments, which means taking regular withdrawals to generate income. The main problem with traditional 60/40 portfolios is that market volatility in retirement could mean losing years of hard-earned savings, particularly if you withdraw a large sum when prices are low. Now, the number one way to mitigate this risk is to diversify your portfolio; and the number one way to diversify is by adding different asset classes. This is why, with our client’s long-term goals in mind, we invest a large portion of our clients’ assets in alternative asset classes, in addition to traditional public stocks and bonds. It is because of this we have been able to mitigate that volatility which is so undesirable as you approach retirement. So, when you’re looking at your 2019 investment returns, remember to keep them in context of your longer-term investment objectives – and try to see past the year-to-year volatility. 

The results speak for themselves.

SLEEP BETTER AT NIGHT

DOWNLOAD THE WEALTHCO. ASSET MANAGEMENT Q1 2020 FUND FACT, AND SEE HOW WE CAN HELP YOU SLEEP BETTER AT NIGHT KNOWING YOU'RE ON YOUR WAY TO REACHING YOUR GOALS AND OBJECTIVES FOR THE FUTURE. 

WealthCo is a corporate group that includes, WealthCo Planning Services Inc. and WealthCo Risk Management Inc. and WealthCo Asset Management Inc.  Investment Management services are provided under WealthCo Asset Management.  That firm is registered as an Exempt Market Dealer in the provinces of Alberta, British Columbia, Manitoba, Saskatchewan and Ontario.  It holds a Portfolio Manager license in the provinces of Alberta, British Columbia, Manitoba and Saskatchewan and an Investment Fund License in the province of Alberta.  The information in this website is directed to individuals registered in those provinces.  The information provided here is for general information purposes and should not be construed as providing advice.  WealthCo has not independently verified any information set out herein.  Any opinions set out herein are subject to change and WealthCo does not undertake to notify the reader of such changes.

2019. WealthCo.