Welcome to Our Monthly Newsletter - Pharus Perspectives!

With central banks slashing interest rates, the recent resolution of the U.S. government shutdown, and Canada unveiling a fresh budget, the global economic landscape is shifting fast. Investors everywhere are asking: Where are the markets headed next?

This month, Pharus Perspectives cuts through the noise with bold insights and practical strategies—so you can navigate uncertainty with clarity and confidence.

Stay Informed and empowered with our latest insights

• Canadian Budget Breakdown: Understand key takeaways and how fiscal changes may impact you.
• Disability Credit Update: Get the latest on eligibility and enhancements to the Canada Disability Credit.
• Wealth Transfer Strategies: Learn smart ways to give, receive, and preserve family wealth.
• Liquid Alternatives Explained: Discover how this flexible asset class can strengthen your portfolio.

Join us as we navigate today’s financial landscape and build toward a resilient, prosperous future—together.

Monthly World Markets Report

November 2025 Market Snapshot

Summary

• Gold prices have reached record highs, driven by global instability and investor demand for safe assets.
• The TSX is outperforming the S&P 500, supported by strong gains in gold mining and financial stocks.
• The Materials sector is up 70% year-to-date, with many gold miners doubling in value.
• Canadian banks continue to deliver solid earnings and dividends, reinforcing market resilience.
• Limited mine production and rising costs are tightening gold supply, supporting continued price momentum.

Key Takeaways

• Gold’s Momentum: Fueled by fiscal instability, central bank diversification, and geopolitical risks.
• TSX Outperformance: Canada’s resource-heavy index benefits from gold and strong bank earnings.
• Sector Leadership: Materials sector leads with 70% gains; gold miners are top performers.
• Defensive Rotation: Investors favor safe-haven assets and dividend-paying stocks amid volatility.
• Macro Outlook: Continued uncertainty and potential rate cuts support gold’s strength into 2026.

Monthly Performance Update

Source: Click Here for Monthly World Market Report.

Observed Trends from Our Research Models

Recent observations from our research models indicate that markets are experiencing elevated levels and ongoing volatility. In this environment, flexibility and discipline remain important as conditions evolve. Emphasis continues to be placed on downside risk management and income generation within diversified portfolios.

The following points reflect general trends identified by our research models. These are intended for informational purposes only and do not constitute specific advice or recommendations.

Strategic Trends

• Equities: Research models have observed a tendency toward modestly lower allocations relative to long-term strategic benchmarks.
• Fixed Income: There is a noted trend toward increased allocations to fixed income, with some extension of duration to take advantage of prevailing yield levels.
• Cash: Maintaining a prudent cash allocation has been identified as a common approach to allow for flexibility during periods of market adjustment.
• Rebalancing: Some models highlight the practice of realizing gains from recent strong performers and reallocating to shorter-duration fixed income instruments.
• Income Focus: There is a general trend toward enhancing income by incorporating lower-volatility and dividend-oriented exposures.
• Active Management: Increased selectivity in asset selection is noted as a way to potentially benefit from market inefficiencies and corporate developments.
• Diversification: Spreading exposures across multiple regions, sectors, and asset types remains a widely observed strategy to manage risk and promote more consistent returns.

These insights are based on broad research trends and are provided for general informational purposes only. Individual circumstances may differ, and these trends may not be appropriate for all investors.

Special Feature: Canada 2025 Federal Budget

2025 Canadian Federal Budget – Tax Highlights for Individuals and Business Owners

The 2025 Federal Budget introduces a range of tax measures aimed at supporting middle-class Canadians, refining tax credit eligibility, and enhancing business investment incentives. While some previously proposed initiatives have been cancelled or delayed, others reflect the government’s commitment to targeted relief and improved tax administration. Below is a summary of the most relevant updates for individuals and business owners.

Personal Tax Measures

• Middle-Class Tax Cut: The first marginal personal income tax rate will drop from 15% to 14.5% for 2025, and to 14% from 2026 onward.
• Top-up Tax Credit: Because non-refundable tax credits are calculated using the lowest tax rate, the rate reduction also lowers their value. In rare cases—such as large tuition or medical expense claims—this could result in higher taxes. To prevent this, a new Top-up Tax Credit will preserve the 15% value for credits claimed on amounts exceeding the first tax bracket threshold ($57,375 in 2025). This applies from 2025 through 2030.
• RRIF Minimums: No changes were made to the required minimum withdrawals from Registered Retirement Income Funds, despite earlier campaign promises.

Home & Health-Related Tax Credits

• Home Accessibility Tax Credit (HATC) & Medical Expense Tax Credit (METC): Currently, taxpayers can claim both credits for the same qualifying renovation expenses. Starting in 2026, double claiming will no longer be allowed. An expense claimed under the METC cannot also be claimed under the HATC. Deadline: December 31, 2025, is the last day to claim both credits for the same expense.
• Personal Support Workers (PSW) Tax Credit: A new refundable credit of 5% of eligible earnings (up to $1,100) for PSWs working in hospitals, nursing homes, and home care. Exclusions: PSWs in BC, Newfoundland and Labrador, and the Northwest Territories are excluded due to existing wage agreements.

Business & Investment Measures

• Immediate Expensing for Manufacturing Buildings: Eligible buildings used for manufacturing or processing can be fully expensed in the first year of use (starting Nov 4, 2025). Reduced accelerated rates apply for use between 2030–2033.
• Flow-Through Shares: The Budget confirms the government’s intention to proceed with previously announced changes to flow-through share arrangements. These shares allow resource companies to pass tax deductions to investors, encouraging exploration and development. The government is reviewing the structure to ensure it aligns with climate goals and economic efficiency, with further details expected in future legislation.
• Cancellation of the Canadian Entrepreneurs’ Incentive (CEI): The CEI, which offered reduced tax on up to $2 million in capital gains, has been withdrawn.

Tax System & Compliance Updates

• Automatic Tax Filing for Low-Income Individuals: CRA will be authorized to file returns on behalf of eligible individuals starting with 2025 tax returns (filed in 2026).
• Bare Trust Reporting: Filing requirement postponed to the 2026 taxation year.
• Expanded Anti-Avoidance Rules: New rules will apply to indirect trust-to-trust property transfers starting November 4, 2025.

These measures reflect the government’s evolving approach to tax fairness, compliance, and economic growth. For a deeper dive into all budget provisions, including sector-specific impacts and planning opportunities, please read our full budget analysis at below link:

Source: Click Here for full Report on 2025 Canada Federal Budget.

Financial Planning Feature

What you need to know about the Canada Disability Benefit

The Canada Disability Benefit (CDB) officially launched in mid-2025, offering a new layer of financial support for working-age Canadians living with disabilities. For businesses, financial advisors, and HR professionals, understanding the CDB is essential—not only to support eligible employees and clients, but also to navigate its implications for financial planning, benefits coordination, and workforce inclusion.

Summary of Key points

• Eligibility
  • Applicants must be aged 18–64 and approved for the Disability Tax Credit (DTC).
  • Must have filed a 2024 federal tax return and be a Canadian resident for tax purposes.
  • Applications can be submitted online, by phone, or in person at Service Canada.
• Application Process
  • Many eligible individuals received a letter with a unique application code.
  • Others can apply by providing their mailing address and net income from line 23600 of their 2024 Notice of Assessment.
  • Applications for individuals turning 18 can be submitted at 17.5 years but won’t be processed until their 18th birthday.
• Benefit Payments
  • First eligibility month: June 2025; first payments issued in July 2025.
  • Back payments available for up to 24 months, starting from June 2025.
  • Maximum benefit: $2,400 annually ($200/month), adjusted annually for inflation.
• Income Testing
  • Benefit amount decreases as adjusted family net income rises.
  • Income exemptions:
    • Single applicants: $10,000 of working income exempt.
    • Married/common-law: $14,000 combined exempt.
  • Factors affecting benefit: marital status, employment income, and whether both partners receive CDB.
• Additional Opportunities
  • DTC approval also unlocks access to the Registered Disability Savings Plan (RDSP).
  • Up to $70,000 in grants and $20,000 in bonds available.

Key Takeaways

• You may be eligible for the Canada Disability Benefit (CDB) if you're between 18 and 64 and approved for the Disability Tax Credit (DTC).
• You can apply online, by phone, or in person at a Service Canada Centre—even if you didn’t receive a letter with an application code.
• Payments start the month after your application is approved, and you can receive back payments for up to 24 months (from June 2025 onward).
• The maximum benefit is $200 per month ($2,400 per year), and it’s adjusted annually for inflation.
• Your income matters: The amount you receive depends on your and your partner’s income from your 2024 tax return.
• Some income is exempt: If you work, up to $10,000 (single) or $14,000 (couples) of your earnings won’t count against your benefit.
• Use the online estimator to get a personalized idea of how much you could receive—just have your 2024 Notice of Assessment handy.
• Bonus tip: If you qualify for the DTC, you can also open a Registered Disability Savings Plan (RDSP), which could unlock up to $90,000 in grants and bonds.

Source: Click Here for Full Details

CIBC Smart Advice Feature

Passing on wealth: Strategies to give, receive and thrive

In this episode of CIBC’s Smart Advice podcast, Carissa Lucreziano and Richard Voss explore the complexities of intergenerational wealth transfer and offer practical strategies for giving, receiving, and preserving wealth across generations.

As Canada experiences the largest intergenerational wealth transfer in its history—estimated at $1 to $2 trillion over the next two decades—families are increasingly choosing to give financial gifts during their lifetimes rather than waiting for traditional inheritance. In this episode of Smart Advice, CIBC’s Carissa Lucreziano sits down with Richard Voss, Director of Wealth Strategies at CIBC Private Wealth, to discuss how families can navigate this transition thoughtfully and effectively.

Summary

The conversation begins with the growing trend of “giving while living,” driven by longer life expectancies and a desire to witness the impact of financial gifts. Voss emphasizes that early gifting can be more meaningful and beneficial, especially when helping younger generations with milestones like homeownership or education.

Despite this trend, nearly half of Canadians still don’t have a will. Voss explains that a will is just one part of a comprehensive estate plan, which should also include powers of attorney, beneficiary designations, and potentially trusts or charitable structures. He stresses the importance of open family conversations to avoid misunderstandings and ensure that wealth transfer aligns with family values.

The episode also addresses the next generation—millennials and Gen Z—urging them not to rely on potential inheritances. Instead, they should focus on building financial independence through budgeting, saving, smart debt use, and continuous skill development.

Finally, for those receiving an inheritance, Voss advises taking time to grieve, reflect on the values behind the gift, and seek professional guidance to make informed financial decisions.

Key Takeaways

• Giving while living is gaining popularity as families seek to support loved ones during their lifetimes and witness the impact of their generosity.
• Only 50% of Canadians have a will, with even lower rates among younger generations—highlighting a critical gap in estate planning.
• A complete estate plan includes more than just a will: powers of attorney, beneficiary designations, trusts, and charitable giving structures are also essential.
• Family conversations are crucial to successful wealth transfer. Regular, inclusive, and judgment-free discussions help align expectations and reduce conflict.
• Younger generations should focus on financial independence, using strategies like the 20-50-30 budgeting rule, smart debt, and ongoing education.
• Recipients of inheritances should pause and plan, honoring the giver’s legacy while making thoughtful financial decisions.

This episode is a must-listen for families navigating wealth transfer, young adults building financial resilience, and anyone seeking to align their financial legacy with their values.

Source: Listen to the full Podcast.

Financial Solution Feature

In this section, we educate the reader on different financial solutions. We discuss and elaborate each idea over a couple monthly editions. This section is not to be taken as specific advice.

Exploring Alternative Investment Strategies: Enhancing Portfolio Resilience and Return Potential

In today’s dynamic market environment, investors are increasingly turning to alternative strategies to diversify portfolios, manage risk, and pursue returns that are less correlated with traditional asset classes. These strategies employ sophisticated techniques—such as leverage, short selling, and derivatives—to navigate complex market conditions and unlock new sources of value.

What Are Alternative Strategies?

Alternative investing goes beyond conventional stock-and-bond allocations. These strategies are designed to hold a mix of traditional and non-traditional assets, but they’re managed using unconventional methods:

• Leverage involves borrowing capital to amplify potential returns.
• Short selling allows investors to profit from declining asset prices.
• Derivatives are contracts whose value is tied to underlying assets like stocks, bonds, or commodities.

By using these tools, alternative strategies aim to reshape the risk-return profile of a portfolio—sometimes even generating positive returns when traditional markets are under pressure.

Key Alternative Strategies and Their Portfolio Roles

Here’s a breakdown of several prominent alternative strategies and how they can be integrated into client portfolios:

How to Use Alternatives in Client Portfolios

Alternative strategies can serve multiple roles depending on client goals:

• Diversification: Reduce reliance on traditional equity and fixed income.
• Risk Management: Hedge against market downturns or inflation.
• Return Enhancement: Capture opportunities in inefficient or volatile markets.
• Liquidity Planning: Some strategies offer daily liquidity, while others may be semi-liquid or illiquid—important for aligning with client time horizons.

What’s Next

In the final installment of our three-part series on alternatives, we’ll explore Liquid Alternatives—including semi-liquid vehicles and evergreen funds that provide access to direct private equity and private credit managers. These structures aim to combine the sophistication of alternatives with the accessibility of traditional mutual funds.

Fun Stuff

Toronto Holiday Prep: 5 Festive Family Adventures to Kick Off the Season!

Looking to sprinkle some holiday magic into your family’s calendar? Toronto is bursting with festive fun this season—from twinkling lights to sugarplum dreams. Here’s a cheerful roundup of activities to get everyone in the spirit!

Skate Under the Stars at Nathan Phillips Square

• Bundle up and glide across the iconic outdoor rink at Nathan Phillips Square, open from November 29 through January 7. With the Cavalcade of Lights kicking things off, you’ll be skating beneath a canopy of lights and a massive Christmas tree. Rentals are available, so no skates? No problem.

See “The Nutcracker: A Canadian Tradition”

• Introduce your little ones to the magic of ballet with Ballet Jörgen’s uniquely Canadian take on The Nutcracker. It’s showing at The Rose Theatre in Brampton on December 17 & 18, and it’s a holiday tradition worth starting.

Explore a Holiday Market

• Wander through the Distillery Winter Village or other local holiday markets for handmade gifts, warm treats, and cozy vibes. It’s a great way to support local artisans while sipping hot cocoa and listening to carolers.

Light Up Your Night

• Drive or stroll through dazzling displays like Glow Gardens, Casa Loma’s Holiday Lights, or Toronto Zoo’s Holiday Marketplace. These immersive experiences are perfect for snapping family photos and soaking in the sparkle.

Whether you're skating, shopping, or sipping cider, this is the season to enjoy some time with family, friends and loved ones.

To stay up to date on market events, news, and reports, follow Pharus Wealth Advisory Group on our Social Media Pages. For Financial Literacy and Planning, visit Pharus Resources, where we upload timely articles on Financial Planning and Financial Literacy Resources.

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Pharus Wealth Advisory Group

The Beacon to your Financial Journey

1623 Avenue Road, Toronto ON M5M 3X8

Phone: 416 861-2460

Email: mailbox.pharuswealth@cibc.com

Website: www.pharuswealth.ca