Having spent 39 years in the financial industry, I have witnessed extraordinary transformation and progress. When I began my career, trades were recorded on paper, and communication relied solely on telephone calls and written correspondence. It is remarkable to reflect on how far we have come. 39 years ago, a cancer diagnosis was often considered a death sentence, surgical techniques were rudimentary, and many diseases that once killed or disfigured millions have now been eradicated. Connecting with loved ones overseas was once costly and challenging, and the concept of interactive meetings via computer was unimaginable. The past 39 years have truly been a period of remarkable human advancement. It is important to acknowledge the tremendous progress we have made, while recognizing that there is still much to achieve. In times of uncertainty, we must remind ourselves that progress is seldom easy, yet humanity possesses an extraordinary capacity for change and growth. Despite ongoing challenges, we continue to move forward.

If you had surveyed most investors at the start of 2025, few would have anticipated such robust market returns. In fact, the past three years have been exceptional. We believe that to benefit from ongoing progress, it is essential to remain engaged and invested. That is why we focus on developing a deep understanding of your individual needs. Written financial and investment plans serve as vital signposts during turbulent times, helping us maintain discipline regardless of market conditions.

Our portfolios performed admirably last year, with our exposure to Canadian equities outperforming U.S. equities. We anticipated that longer-term bonds could face headwinds as governments persist in borrowing at elevated levels, prompting us to shorten our term to maturity. This strategy was rewarded through strong performance from our bond managers..

We also introduced mandates designed to benefit from increased market volatilityand we are pleased with its performance thus far.

Currently, U.S. companies represent between 65% and 70% of global market indices, while the U.S. economy accounts for approximately 30% of the world economy. Consequently, many managers, including ourselves, have been reducing U.S. exposure in portfolios. While geopolitics have accelerated this shift, it was bound to happen given that exceptional US performance over the past decade led to elevated valuations.

Looking ahead, we anticipate a continuation of some of the themes that dominated headlines for the past year. We are in a world of increased geopolitical risk where some alliances of the past will be tested or broken. The pace of technological innovation will likely continue leading to significant productivity gains and potential job losses. The road ahead will be filled with both opportunity and challenges. Our commitment remains steadfast: to adhere to our disciplined approach and manage your wealth for the long term. We will always ensure that funds needed in the short term are invested in liquid, low-volatility solutions, allowing you to be patient and benefit from long-term opportunities.

Thank you for the trust and confidence you have placed in us. We look forward to serving you for many years to come. As always, our team is available to answer any questions or concerns that you may have.

CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries through CIBC Private Banking; CIBC Private Investment Counsel, a division of CIBC Asset Management Inc. (“CAM”); CIBC Trust Corporation; and CIBC Wood Gundy, a division of CIBC World Markets Inc. (“WMI”). CIBC Private Banking provides solutions from CIBC Investor Services Inc. (“ISI”), CAM and credit products. CIBC Private Wealth services are available to qualified individuals. Insurance services are only available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are only available through CIBC Wood Gundy Financial Services (Quebec) Inc. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World Markets Inc.