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In News & PR•October 23, 2026•33 Minutes

A new chapter for Nest Wealth

bySean Tascatan, CFA Chief Investment & Growth Officer Nest Wealth Asset Management Inc.

Professional headshot: man with dark hair and beard, glasses, navy suit, white shirt, and purple tie against a dark background.

Sean Tascatan, CFA
Chief Investment & Growth Officer
Nest Wealth Asset Management Inc.

Tascatan joins Nest Wealth with over 15 years of investment management experience, including serving as lead portfolio manager on award-winning funds and helping manage multi-billion-dollar portfolios. He previously held senior roles at Starlight Capital, Sentry Investments and BMO Private Wealth. At Nest Wealth, he is leading investment strategy and asset allocation.

A new chapter for Nest Wealth

Nest Wealth was founded on a simple conviction: Canadians deserve access to high-quality, professionally managed investing that aims to provide lasting value.

As a pioneer of robo-advice in Canada, we built a digital investing platform designed to make sophisticated portfolio management more accessible, transparent, and cost-effective, delivering greater value without compromising on quality. That same commitment to innovation and challenging conventional wealth-management models is driving what we are announcing today.

Nest Wealth is entering its next chapter.

We are relaunching the firm with an upgraded platform, a new mobile app, and redesigned client experience. Most importantly, we are introducing a modernized approach to portfolio construction and management, anchored in institutional-quality asset allocation and designed to support a more diversified, resilient investment experience for Canadians.

This relaunch marks the first stage of improvements we intend to make over the coming years.

Why we are enhancing our portfolios

The traditional 60/40 portfolio, roughly 60% equities and 40% fixed income, remains a useful foundation for investing. But its diversification benefits can weaken when inflation and rising interest rates put pressure on both asset classes at the same time.1,2

Between 2021 and 2023, central banks around the world raised interest rates sharply to bring inflation under control. During this adjustment, stock and bond returns became positively correlated, meaning they increasingly moved in the same direction rather than offsetting one another.3

The impact was particularly clear in 2022: U.S. equities, measured by the S&P 500, fell approximately 18%, while U.S. investment grade bonds, measured by the Bloomberg U.S. Aggregate Bond Index, fell approximately 13%. A portfolio invested 60% in the equity index and 40% in the bond index lost approximately 16%, its worst calendar year since the 2008 financial crisis.4

For us, the lesson is not to abandon stocks and bonds, but to broaden the sources of diversification alongside them. We are introducing selected alternative strategies with the aim of reducing reliance on the relationship between equities and fixed income.2
These investments bring their own risks and cannot eliminate losses, but our objective is to build a portfolio better prepared for a range of conditions. Your portfolio may need to support you for 20 years or more, and we believe its design should reflect that.

A broader approach to investing, inspired by leading institutions

Our expanded portfolio approach draws on practices used by major Canadian pension funds, including diversification beyond traditional stocks and bonds through alternative investments.

A 40/30/30 mix illustrates this approach: approximately 40% public equities, 30% fixed income and 30% alternatives.5 In our portfolios, that alternatives allocation will mainly be implemented through liquid alternatives. These are reference weights, not a single allocation for every client. Your portfolio’s mix will reflect your investment needs and objectives, risk profile, investment time horizon and liquidity needs which will be suitable for your specific circumstances.

Within the liquid alternatives allocation, we distinguish between return enhancers, designed to add return; diversifiers, designed to reduce reliance on any single market; and inflation protectors, designed to hold up when inflation pressures traditional bonds and equities according to their intended contribution. The aim is to broaden the portfolio’s sources of return, not simply increase the number of holdings. We seek strategies that respond differently to market and economic conditions, while recognizing that diversification cannot eliminate the risk of loss.

This is a step toward Enhanced Strategic Asset Allocation, drawing on selected principles of the Total Portfolio Approach (TPA) used by institutional investors. We will retain clear strategic allocations and investment limits while placing greater emphasis on how investments work together across the whole portfolio.

Beyond benchmarks: a focus on goal-based investing

This broader perspective also informs how we assess success. Appropriate benchmarks will remain an important measure of performance, but we will consider those results alongside risk, costs and the portfolio’s fit with your needs and objectives.

The focus is not simply on whether your portfolio outperforms a benchmark over a given period. It is also based on whether it remains suited to your financial goals, the time you have to invest, and the level of risk you are willing and able to take.

Understanding the Total Portfolio Approach

TPA was pioneered by leading institutional investors and pension plans, and is now one of the most discussed ideas in institutional investing.6,7 Where traditional models such as Strategic Asset Allocation (SAA) set fixed policy weights and rebalance back to them, TPA evaluates risk and return across the entire portfolio, replaces rigid asset-class silos, and is designed to shift with conviction when conditions warrant.6 At its core, it is an evolution of modern portfolio construction rather than a rejection of it, keeping diversification, discipline, and a long-term orientation at the center while building for a more interconnected, regime-shifting world.

Historically, this approach has been most accessible to large pension plans, endowments, and family offices with the resources to implement it. Our goal is to make similar portfolio construction principles available to individual investors by adapting them to the objectives, liquidity needs, and constraints of individual clients. We will adopt the elements that are useful and practical for our clients while maintaining clear strategic allocations and investment limits, allowing us to begin applying the principles that can improve outcomes today.

Moving from traditional SAA to TPA takes time, patience, and planning, and even the largest institutions do not make that change all at once.6 This relaunch is the first step in a multi-year evolution toward a Total Portfolio Approach mindset, which will shape how we think about and build portfolios.

Introducing liquid alternative strategies

Through partnerships with some of the largest and most respected names in Canadian investment management, we are broadening the range of investment strategies that have historically been out of reach for most Canadian retail investors. The diversifying sleeve of the portfolio will include liquid alternatives, which bring institutional-style risk and return patterns into an accessible format. Pension funds, including CPP Investments, have used hedge-fund-style strategies for nearly two decades to reduce correlation to traditional markets and build more resilient portfolios.8

As liquid versions have become accessible, they have become an increasingly important building block for robust, diversified portfolios.9 Each strategy plays a distinct role and below are a few options we may consider:

  • Equity long-short strategies aim to generate returns that are less dependent on the direction of stock markets, seeking to participate in market gains while dampening exposure to broad equity drawdowns.
  • Market-neutral strategies seek to limit directional market exposure, with returns driven primarily by security selection rather than by whether markets rise or fall.
  • Alpha-generating strategies seek idiosyncratic sources of return that are intended to have low correlation with broad equity and fixed-income markets, rather than simply providing market exposure at a higher fee.
  • Inflation-protection strategies are designed to help preserve purchasing power over time.
  • Multi-strategy approaches combine several complementary investment approaches to diversify return sources and reduce reliance on any single market or factor.

Separately, we are evaluating whether real assets, such as infrastructure, real estate, and commodities, as well as private equity, could complement traditional public-market exposures in appropriately designed portfolios. These asset classes may provide differentiated return and income sources, potential inflation sensitivity, and long-term growth potential10, while also incorporating distinct considerations such as liquidity, valuation, complexity, and investment horizon.

The goal is broader diversification with the intended result of more ways to generate returns, less dependence on stocks and bonds alone, and a greater emphasis on downside risk. The early evidence supports the direction. Industry commentary highlights how selected alternative strategies may complement a traditional stock-and-bond portfolio by broadening diversification, including during periods when stocks and bonds move together, with their potential contribution evaluated in terms of both risk and return.1,5

Our philosophy is to manage risk deliberately, with the aim of preserving capital while pursuing long-term growth.

Diagnosing risk across the whole portfolio

Adding new strategies is only useful if we also understand the hidden risks that run through the whole portfolio. One of the lessons of the last cycle is that risk is not always where it appears. Interest rate risk, for example, does not live only in bonds. Equities, real assets, and even alternatives can carry rate sensitivity through their connection to broader macroeconomic forces. Consider a hypothetical case. An investor tries to eliminate interest rate exposure by selling core bonds, only to reintroduce it by moving the proceeds into dividend-paying equities and real estate. The rate sensitivity they thought they had removed simply shifts to the equity side of the portfolio, leaving them just as exposed, if not more, to the very risk they set out to avoid.

This is why we are strengthening our tools and analysis to better understand common sources of risk across the portfolio. This will help us assess whether an alternative strategy adds useful diversification or introduces exposures we already hold.

Why portfolio construction, not just access, is the differentiator

There is a common view that access to high-quality investment strategies is the key to better investment outcomes. Access matters, and we are proud to be expanding it for Canadians. But access alone is not enough.

Long-term outcomes are shaped by how investments work together in a portfolio: how risk is diversified and balanced across asset classes and return drivers, how exposures are aligned with an investor’s objectives and risk tolerance, and how the portfolio is managed as investor needs, market conditions, and the opportunity set evolve.

This is a core principle of portfolio construction. Asset allocation is central11, but so too are investment selection, diversification, risk management, implementation, costs, and ongoing monitoring and rebalancing.

Our investment in this relaunch is, above all, an investment in portfolio construction: enhanced tools and data, stronger oversight, and greater flexibility to manage allocations within each portfolio’s established mandate. Rather than relying on any single product or strategy, our focus is on building portfolios that balance risk and return across the total portfolio and are designed to support clients in pursuing their long-term financial goals.

A more sophisticated platform, and a roadmap ahead

The relaunch is also part of Nest Wealth’s broader evolution into a more sophisticated investment platform, built to keep innovating and introducing new solutions as your particular needs grow. Looking ahead, we are evaluating potential additions to our investment platform, including tax-aware and individual-stock solutions, direct-indexing capabilities, and target-date funds, that may be suitable to support your evolving financial needs.

Alongside these investment capabilities, we are upgrading our digital platform and mobile app and investing in our team to support the firm’s future growth and improve your experience.

What happens next

You may need to take action for these changes to take effect. Over the coming year, we will review whether the enhanced portfolio is suitable for you. For taxable accounts, we will discuss potential tax consequences before making any changes and any account-specific documentation, disclosures or notices will be provided separately at the applicable time. As noted above, before implementing material portfolio changes, we will also consider current KYC information and other relevant circumstances to ensure the proposed portfolio remains suitable. We will also introduce the new platform and mobile app, while providing regular updates on timing and what to expect throughout the process.

If you have any questions in the meantime, please reach out to our Client Experience Team at support@nestwealth.com.

We helped pioneer robo-advice in Canada. This next chapter builds on that commitment, with broader investment capabilities, a better digital experience and a continued focus on managing your portfolio with care and discipline.

Thank you for trusting us.

Sincerely,
Sean Tascatan, CFA
Chief Investment & Growth Officer
Nest Wealth Asset Management Inc.

Important Information

This communication is intended to provide general information regarding Nest Wealth Asset Management Inc.’s evolving investment philosophy, portfolio management approach and planned enhancements to its services. The investment strategies, portfolio allocations and products discussed are illustrative of our broader investment approach and may not be appropriate or available for all clients. Any changes to individual client portfolios will be made in accordance with applicable investment mandates and subject to an assessment of each client’s unique circumstance. All investments involve risk, including the potential loss of capital. Diversification and the use of alternative investment strategies do not guarantee improved returns, reduced volatility or protection against investment losses. Alternative strategies may involve additional risks, including increased complexity, leverage, liquidity constraints and exposure to market conditions that may differ from traditional equity and fixed-income investments. Actual portfolio allocations, investment outcomes and the risks applicable to individual clients will vary.
Certain information and investment perspectives presented in this communication are based on third-party research, publications and market data believed to be reliable. While reasonable efforts have been made to ensure the accuracy of this information, Nest Wealth does not guarantee its accuracy or completeness. The views, assumptions and conclusions reflected in these sources are those of their respective authors and may not reflect the views of Nest Wealth or be directly applicable to its investment strategies or client portfolios. References to third-party research are provided for informational purposes and should not be interpreted as an endorsement of Nest Wealth’s investment approach or as an indication of expected investment results.
References to investment strategies, portfolio construction approaches and historical market performance are provided for illustrative and informational purposes only and should not be interpreted as guarantees or predictions of future results. Past performance is not necessarily indicative of future performance.
Certain enhancements and investment solutions described in this communication remain under development or consideration and may be introduced over time, subject to applicable requirements. Any material changes to client arrangements, including applicable management fees, will be communicated separately in accordance with applicable regulatory requirements and client agreements.

Appendix:

1. why the 60/40 is less reliable today. j.p. morgan private bank notes that the traditional 60/40 rests on the assumption that bonds rise when equities fall, an assumption that failed in 2022 when both declined as inflation surged. it points to persistent inflation, fiscal risks, elevated stock-bond correlations and concentrated public markets as reasons investors may look beyond the traditional mix, and reports that a 60/30/10 portfolio (with 10% in hedge funds) outperformed the traditional 60/40 in approximately 70% of years over the past decade and in every year since 2021. its comparison uses developed-market equity and global aggregate bond indices, with the hfri fof diversified index representing hedge funds. Source:

2. The stock-bond correlation shift. BlackRock argues that the relationship between stocks and bonds has fundamentally shifted, making correlations less reliable and reducing the diversification benefits the two asset classes historically provided each other. It attributes this to persistent inflation, policy action and fiscal imbalances, and suggests investors consider liquid alternatives and gold to improve diversification. Source:

3. Stock-bond correlation turned positive. During the high-inflation, rapidly rising rate environment of 2022, stocks and bonds declined together and the negative correlation that had existed between the two asset classes for roughly two decades turned positive. Morningstar notes that the stock-bond correlation remains higher than before 2022. Sources:

4. 2022 index and 60/40 returns. In 2022 the S&P 500 fell approximately 18% and the Bloomberg U.S. Aggregate Bond Index fell approximately 13%. A portfolio of 60% S&P 500 and 40% Bloomberg U.S. Aggregate, rebalanced monthly, lost just under 16%, its worst year since the 2008 global financial crisis. Sources:

5. The 40/30/30 portfolio concept. In May 2022, KKR, led by Henry McVey and his team, proposed modifying the traditional 60/40 into a 40/30/30 portfolio: 40% public stocks, 30% traditional fixed income and 30% alternatives split equally among private real estate, private infrastructure and private credit. In KKR’s modelled analysis (annual returns from 1928 to 2021, with shorter histories for the private asset classes), the 40/30/30 portfolio lowered volatility and raised the Sharpe ratio from 0.73 to 1.00 across all periods, and from 0.12 to 0.49 in high-inflation periods. KKR’s alternatives sleeve is private; Nest Wealth’s implementation uses liquid alternatives. Sources:

6. Total Portfolio Approach (TPA): origin and institutional adoption. Early TPA adopters included large sovereign wealth funds and public pension plans, particularly in Canada, Australia and New Zealand, including the Canada Pension Plan Investment Board (CPPIB), New Zealand Superannuation Fund and Australia’s Future Fund. Whereas strategic asset allocation is benchmark driven, built on policy weights and asset-class silos, TPA evaluates each investment by its contribution to the total fund’s objectives, risks and constraints. TPA is a spectrum adopted in stages rather than a single switch; only eight of the world’s 100 largest funds run fully on it. Sources:

7. The rise of total portfolio investing. Russell Investments notes that much of the industry’s attention has focused on TPA because of its adoption by some of the largest asset owners, including CalPERS and AustralianSuper, as institutions increasingly integrate risk, liquidity and capital allocation decisions across asset classes. Source:

8. Pension funds and hedge-fund-style strategies. CPP Investments made its first hedge fund allocation in fiscal 2007, to further diversify its active risk, and planned to add funds of hedge funds the following year. Today its External Portfolio Management program partners with external public-market managers in absolute return-focused strategies whose returns come from sources different from market-oriented equity exposures. Sources:

9. Liquid alternatives: structure and growing use. Liquid alternatives provide hedge-fund-like strategies in a more accessible, transparent and regulated format, and are designed to enhance diversification. Interest accelerated after the 2008 financial crisis, and regulatory changes and new fund structures have since broadened access. Morningstar notes that, to enhance diversification beyond traditional stocks and bonds, some investors and advisors may turn to liquid alternatives such as equity market-neutral investing and managed futures. Sources:

10. Real assets, private equity and inflation. KKR argues that private equity, like private credit and real assets, can be additive to traditional portfolios, particularly for investors concerned about inflation. It notes that infrastructure and real estate often have inflation indexation embedded in their cash flows, and that the replacement value of these assets rises in a rising nominal GDP environment. Source:

11. Asset allocation and portfolio return variation. The Brinson, Hood and Beebower (1986) study found that asset allocation policy explained 93.6% of the variation in a portfolio’s quarterly returns over time, often summarized as about 90%. Later research clarified that this finding concerns the variability of returns over time, not the level of returns or differences in returns between funds. Sources:

Nest Wealth Asset Management

Nest Wealth Asset Management is a regulated Portfolio Manager and Canada’s first robo-adviser established in 2014. Focused on personalization, cost-effectiveness and professional oversight, Nest Wealth Asset Management offers an investment service that is built for those who prefer a hands-off approach: a digital solution developed with a well-structured investment plan that supports client needs with the creation of an appropriate portfolio of low-cost Exchange Traded Funds (ETFs) or mutual funds. Nest Wealth Asset Management is part of Objectway Group.
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“Nest Wealth” is the trade name of Nest Wealth Asset Management Inc. The products and services offered are designed specifically for investors in the provinces of AB, BC, MB, SK, PE, NB, NL, NS, QC and ON where Nest Wealth is Registered as a Portfolio Manager and may not be available to all investors. Products and services are only offered in accordance with applicable laws and regulations. This newsletter is neither an offer to sell nor a solicitation of an offer to sell securities in any jurisdiction.