As the frost settles across the Canadian landscape and the year winds to a close, it’s a natural time to reflect on how Q Wealth prepares portfolios for the seasons ahead. Q Wealth Partners emphasize the importance of building resilient portfolios that weather volatility, generate income, and grow capital over time.
One of the most powerful tools in the toolkit is the Q Wealth Signature iQ Strategic Assets Fund (QWP1913), a fund designed to bring institutional-style diversification to individual investors. This fund also recently reached a significant milestone: its one-year anniversary was on October 31st.
The Strategic Assets Fund is built on non-correlation, a concept central to modern portfolio theory and pension-style investing. Simply put, non-correlated assets don’t move in lockstep with traditional markets like stocks or bonds. This means that when equity markets are down, these assets may hold steady or even rise, helping to cushion the blow. Think of it like a well-balanced canoe: when one side dips, the other helps keep you afloat.
A Registered Investment Advisory firm, Evidence Based Investing LLC, shared a simple and clear summary of the idea: imagine two companies (see image below). There is one that sells umbrellas (Investment A) and another that sells sunscreen (Investment B). When it rains, the umbrella company’s sales grow, while the sunscreen company’s sales drop. Conversely, on sunny days, the sunscreen company thrives, and the umbrella company’s sales decline. This illustrates how sunscreen and umbrellas are negatively correlated. By investing equally in both, we reduce the weather-related risk that comes from putting all your money into just one. This way, your returns can potentially stay steady no matter the weather, avoiding swings from very good to very bad outcomes.
It’s worth noting that equity markets are currently at or near all-time highs, with the S&P 500 and other indices rebounding strongly in recent months. Different assets perform at different times. When markets are soaring, it’s easy to forget the value of diversification. But for those uneasy about these highs, non-correlated assets can serve as a ballast, providing stability should markets retreat.
The Strategic Assets Fund’s holdings span various non-correlated alternative assets, including commodities and managed futures contracts, infrastructure (such as a fund with cellphone towers and fibre optic networks holdings), music royalties, private credit, and even mini-mall storage and car wash operations. These are not just niche investments; many are cash-flowing businesses and assets providing income and long-term capital appreciation.
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As we look ahead to 2026, your Q Wealth investment team, including Portfolio Managers, Kevin Hegedus and Andrew Rodych, and Chief Investment Officer, Larry Berman remain focused on thoughtfully rebalancing portfolios, identifying underperforming positions, and redeploying capital into areas of opportunity. The Strategic Assets Fund continues to be a key part of that strategy, providing flexibility, resilience, and access to unique return streams that complement traditional holdings.
If you’re curious about how the Strategic Assets Fund fits into your portfolio, or how your portfolio management team at Q Wealth is using it to manage risk and enhance returns, we’d love to connect. As always, we’re here to help you navigate the markets and your financial journey with confidence and clarity.
