Wes Ashton reveals his strategy to dodge market drops with alternative assets
- Wes Ashton oversees a diversified investment approach at Harbourfront Wealth Management, focusing on risk-adjusted returns.
- His balanced portfolio has reported significant returns, including 13.1% this year and an annualized 7% over five years.
- Ashton remains optimistic about growth in innovation and has long-term investments in key companies like Enbridge and Scotiabank.
In Canada, Wes Ashton, who is the co-founder and director of growth strategy at Harbourfront Wealth Management in Vancouver, is shaping investment strategies by focusing on asset allocation that balances risk and reward. With approximately $585 million in assets under his management, Ashton adopts a diversified approach, allocating between 60 to 70 percent of clients' portfolios to equities, based on individual risk tolerances. The remaining funds are invested in fixed-income securities and alternative assets such as private real estate and private debt. This balanced strategy is designed to shield clients from significant market downturns, allowing them to enjoy more stable returns and a more comfortable investment experience. Ashton's investment strategy is evidently paying off, as his balanced portfolio has seen impressive returns, reporting a growth of 13.1 percent for the current year and a 16 percent increase over the past twelve months. The five-year annualized return stands at 7 percent, all figures being net of fees as of November 30. These outcomes suggest that Ashton’s approach of using alternative assets helps to mitigate the drawdowns typically associated with volatile markets. He has highlighted three key stocks in his portfolio: Enbridge Inc., Bank of Nova Scotia, and the iShares Nasdaq 100 Index ETF. Enbridge, a Calgary-based energy and pipeline company, has been a long-time investment for Ashton, with an average cost of about $33 per share. He cites potential risks for Enbridge tied to energy demand fluctuations and overall market downturns. The Bank of Nova Scotia has been another significant player in his investments, with an emphasis on its strategic shift towards North America to capitalize on growth opportunities. Ashton remains optimistic about the prospects for innovation and artificial intelligence, anticipating that these sectors will fuel growth in the investments he manages. For him, the ability to navigate through market volatility while continuing to achieve strong risk-adjusted returns is not only a strategy but a fundamental component of client satisfaction and financial security.