Albertans’ investment appetites are changing

Peter Kinkaide of Raintree Capital Inc. talks about diversified perspectives in a shifting economic landscape

Peter Kinkaide is CEO of Raintree Capital Inc.

Peter Kinkaide

What is Raintree Capital and what do you do?

Kinkaide: Raintree Capital is a financial services firm with three arms: Raintree Financial Solutions, Raintree Wealth Management and Raintree Corporate Finance.

Founded in 2010, Raintree Financial Solutions has nearly 60 private wealth advisers across Canada who work with clients to invest in public securities managed by portfolio managers in combination with private or alternative investments.

Raintree Wealth Management is a portfolio management firm focused on helping clients invest in the public markets, including stocks, bonds and ETFs.

Raintree Corporate Finance assists entrepreneurs and management teams in raising capital and advising on other investment banking transactions. Raintree Capital believes in the Core + Explore™ investment philosophy – combining public and private investments to create a truly diversified portfolio to withstand today’s market risks.

What is the appetite these days for Albertans in terms of investment?

Kinkaide: I think we are seeing investment appetite change very rapidly today. With equity markets displaying much more volatility in recent months, investors are looking for more diversified investment solutions. I believe this includes increased allocation to bonds as well as off-market investments such as alternatives, for instance private equity, debt and real estate.

With Raintree Wealth Management, we are overweight in cash as equity markets (especially U.S.) have been very overvalued and we have been waiting for a better time to redeploy and rebalance into equities.

Specifically for Albertans, we see more interest in investing away from the energy sector, where so many of our lives are affected by the cyclicality of the industry. Many investors favour investing in things they know, and that for Albertans is energy. We have a responsibility to think about client portfolios in terms of what is best suited to the client’s life circumstances – and that often involves adding much-needed diversification.

What is your sense of what the economic climate is in Alberta?

Kinkaide: Unfortunately, I think it’s quite negative. In the absence of pipeline development and the political will to expedite more transportation to tidewater, it’s difficult to be optimistic about the short-term economic prospects of the province.

That being said, I’ve had the opportunity to travel around the world and I think Alberta has the raw ingredients to be a first-class economic jurisdiction that competes with any other region on Earth. We have the post-secondary institutions, natural resources and skilled labour to thrive as an economy. More than anything, I think we have people with can-do spirit and entrepreneurs that will stimulate our economy in the coming years.

Alberta is the greatest place on Earth and we are blessed to live here. I believe we will get our swagger back and be an economic hub in the not-too-distant future.

What are the best investment opportunities in Alberta?

Kinkaide: If you take a contrarian view, now is a great time to invest in Alberta. One of the greatest principles to invest by is “be greedy when others are fearful.” That’s when the best investment returns can be generated because valuations are lowest. Albertans with the means should be investing in real assets – whether it’s real estate, energy, agricultural activity or timber. On a relative basis, there are some significant deals to be had. Patience and a clean balance sheet are required to make money in this environment.

If we receive more political certainty this year, I think you might see a resurgence in investor sentiment in the province – otherwise you’ll need more patience.

Tell me about Raintree’s commitment and support for Women & Wealth and what that is?

Kinkaide: Women & Wealth is a non-profit event founded by Raintree in 2015. It’s designed to support equality and empowerment for women by hosting celebrations on International Women’s Day (March 8).

It’s an idea we developed organically when we noticed that fewer women were involved in the investment industry and household financial planning. That trend is definitely changing and we wanted to be a change agent to accelerate it.

Each year, we’ve grown the event significantly. This year, Women & Wealth will host almost 1,000 people at our Edmonton event. We’ve had people from across Canada attend our event and ask when we’re going to celebrate in their community. This year, we’re opening our second event in Calgary with Chantal Kreviazuk as our keynote speaker and performer. Our net proceeds will be donated to the Canadian Women’s Foundation. For more information, please visit our website at www.wwgala.com

– Mario Toneguzzi for Calgary’s Business


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