Opinion: Buy Canada

Jory Cohen, Inspirit’s Director of Finance and Impact Investment, wrote an opinion editorial for Advisor.ca about how Canadian investors can tilt their portfolios a little more local. A sharper focus on local economies would make a meaningful difference to Canada as a whole.

Read the full article here. Below is an excerpt.

No advisor would recommend fully divesting from the U.S., but investors can seize this opportunity to trim their allocations to that market and further diversify their holdings by investing in local economies.

It may take more research to find the right opportunities, but it’s worth it for investors looking to put their wallets to work. Financial instruments like community bonds — debt issued by not-for-profits or charities to both retail and accredited investors — can have a meaningful impact within local communities, while also making interest payments to bondholders.

For investors interested in financing projects like local affordable housing developments, community bonds can make a lot of sense for a portfolio. Tapestry Community Capital is a good resource to learn more about the community bond structure and individual projects. (Disclosure: The Inspirit Foundation has purchased community bonds from issuers supported by Tapestry. I’ve also personally purchased bonds from two issuers that had Tapestry support.)

If equity diversification is the goal, allocating capital to place-based funds could be appealing. These types of funds invest in ventures within a certain region, so investors can be confident their capital is being allocated to specific communities.

These diversified financial instruments typically project decent financial returns. The Social Venture Exchange is a resource of investment opportunities.

At Inspirit, our vision of inclusion and pluralism requires us to leverage our investment capital. Visit our Investing page to learn more about our portfolio and how we make our investment decisions.