Welcome to Our Monthly Newsletter - Pharus Perspectives!

Welcome to the latest edition of Pharus Perspectives, where we share insights on the investment landscape, financial planning strategies and ideas to help you navigate an evolving financial environment.

Markets continue to adjust to a changing economic backdrop, with inflation, interest rates, geopolitical developments and shifting market leadership creating both challenges and opportunities for investors. While uncertainty remains, a disciplined approach focused on diversification, long-term objectives and thoughtful planning continues to be essential.

Inside This Month’s Edition

• Market & Portfolio Insights: Our latest Model Research Observations, including opportunities emerging across regions, sectors and asset classes as market leadership continues to broaden.
• Canada’s Economic Outlook: Key insights from CIBC Deputy Chief Economist Benjamin Tal on the risks and opportunities shaping Canada’s economy.
• Retirement Planning Trends: How Canadians are approaching retirement differently, and why a written financial plan can provide greater confidence and clarity.
• Supporting Aging Loved Ones: Strategies to balance caring for family members while protecting your own long-term financial goals.
• Advanced Wealth Strategies: An introduction to Immediate Financing Arrangements and how some investors are using life insurance strategies to preserve capital and enhance estate planning opportunities.
• Financial Facts: A few interesting Canadian and Toronto financial facts to provide a lighter perspective on markets, investing and wealth creation.

Thank you for taking the time to read Pharus Perspectives. We hope these insights provide valuable perspective as you continue working toward your long-term financial goals.

Monthly World Markets Report

Equity Markets in 2026: So Far So Good

The first half of 2026 has reinforced an important investment lesson: markets often perform well despite uncertainty. While the year began with concerns surrounding trade negotiations, elevated market valuations and geopolitical tensions, North American equities have remained resilient, supported by healthy corporate earnings and a stable economic backdrop.

Key Points

• Canadian equities led early performance, benefiting from higher commodity prices and a weaker U.S. dollar.
• Geopolitical tensions in the Middle East temporarily pushed oil prices higher and increased inflation concerns; however, prices have since moderated following the recent ceasefire.
• Corporate earnings have continued to exceed expectations, providing a strong foundation for equity markets.
• Canadian policy support improved as regulators reduced bank capital reserve requirements for the first time since 2006, increasing banks’ capacity to lend and supporting future economic growth.

Looking Ahead

While we remain cautiously optimistic on North American equities, several factors will continue to influence markets in the months ahead:

• Inflation and interest rate expectations.
• Ongoing geopolitical developments.
• Canada–U.S. trade negotiations.
• Elevated equity valuations, which may contribute to periods of increased market volatility.

Investor Takeaway

• Strong economic fundamentals and healthy corporate earnings continue to support the long-term outlook for equities.
• Market volatility should be viewed as a normal part of investing rather than a reason to alter a well-constructed investment plan.
• Maintaining a diversified portfolio and remaining focused on long-term objectives continues to be the most effective approach in an evolving market environment.

We encourage you to read the full CIBC World Markets Report for a deeper look at the trends currently shaping the investment landscape.

Special Feature: Canada’s economic outlook: Relief or more risk?

Join Benjamin Tal, CIBC Deputy Chief Economist as he breaks down the economic trends and how they may impact your finances.

Canada’s Economic Outlook: Navigating Risk with Confidence

Canada’s economy continues to face a period of uncertainty as trade tensions, slowing economic growth and geopolitical developments weigh on business and consumer confidence. In a recent CIBC Smart Advice discussion, Deputy Chief Economist Benjamin Tal highlighted that while risks remain, Canada’s economy has demonstrated resilience and is well-positioned to adapt over the longer term.

Key Points

• Trade uncertainty remains the largest economic risk. Ongoing tariff disputes and shifting trade policies continue to create uncertainty for businesses, investment and consumer confidence.
• Economic growth is expected to remain modest. While Canada’s economy has slowed, it has continued to avoid a significant downturn thanks to resilient consumers, a stable financial system and supportive monetary policy.
• Inflation has largely moderated, allowing the Bank of Canada greater flexibility to support economic activity if conditions weaken.
• Productivity remains Canada’s long-term challenge. Increasing business investment, innovation and productivity will be essential to improving Canada’s long-term economic competitiveness.
• Periods of uncertainty often create market volatility, but history has shown that markets typically adjust as economic conditions evolve and policy responses take effect.

Investor Takeaway

• Separate headlines from long-term trends. Economic uncertainty is a normal part of the investment cycle and shouldn’t drive short-term investment decisions.
• Diversification remains critical. A well-balanced portfolio helps investors navigate changing economic conditions while remaining positioned for future opportunities.
• Focus on what you can control. Rather than attempting to predict economic or political events, investors are generally better served by maintaining a disciplined investment strategy aligned with their long-term goals.
• Financial planning provides perspective. A comprehensive financial plan helps ensure your investment strategy remains appropriate even as economic conditions change, allowing decisions to be guided by long-term objectives rather than short-term market sentiment.

For those interested in a deeper discussion, Benjamin Tal’s full Smart Advice interview explores Canada’s economic outlook, trade risks and what these developments may mean for Canadian households and investors.

Source: Click Here for the full article.⁠

Monthly Performance Update

Market Performance- June 30th, 2026
Index	1 Month	3 Months	YTD	1-Year	3-Year	5-Year
S&P TSX	0.3%	6.8%	11.0%	32.7%	23.4%	14.8%
S&P 500	-1.7%	14.3%	9.3%	21.4%	20.3%	13.2%
NASDAQ	-2.8	21.4%	12.8%	28.7%	23.9%	12.6%
MSCI EAFE	-0.6%	10.3%	9.1%	19.9%	16.7%	9.4%
MSCI Emerg.	-2.3%	23.0%	22.8%	42.8%	23.2%	7.5%
MSCI World	-1.5%	12.5%	8.1%	19.0%	17.3%	9.7%
FTSE Canada Bond	0.5%	2.0%	2.3%	3.5%	4.17%	0.64%

Source: Click Here for Monthly World Market Report.

Model Research Observations

Global markets continue to navigate a period of transition, with economic growth remaining resilient while market leadership broadens across regions and sectors. Inflation has shown signs of renewed pressure recently, creating uncertainty around the pace of future central bank decisions. While geopolitical risks and policy uncertainty remain, corporate earnings and economic resilience continue to provide a constructive backdrop for long-term investors.

Equities:

• Equity markets continue to be supported by healthy earnings growth, particularly in the United States. While recent returns have been driven by a concentrated group of large technology companies, opportunities are beginning to broaden across sectors and market capitalizations.
• We continue to monitor opportunities beyond the largest technology companies, including small and mid-cap businesses positioned to benefit from long-term trends such as artificial intelligence adoption, infrastructure investment and productivity improvements.

Regional Observations:

• The U.S. remains a key driver of global earnings growth; however, valuations remain an important consideration. International markets continue to offer attractive relative valuations, with emerging markets presenting potential opportunities given their long-term growth prospects and current valuation levels.
• Canadian equities are also becoming increasingly interesting as domestic economic conditions show early signs of improvement. Attractive valuations and exposure to sectors such as financials, energy and materials may provide opportunities as economic momentum strengthens.

Fixed Income:

• Fixed income continues to provide portfolio stability and income generation. While cash has remained attractive, investors should begin evaluating opportunities further along the yield curve as they look to secure income over the next three to five years. A gradual approach to extending duration may provide opportunities as market conditions evolve.

Alternatives & Real Assets:

• Infrastructure and real assets remain areas of focus as long-term investment trends continue to develop. The growth of artificial intelligence is creating significant demand for the physical infrastructure required to support it, including data centres, energy generation and connectivity networks.
• These investments may provide exposure to structural growth trends while offering diversification benefits alongside traditional equity and fixed income allocations.

Overall Perspective

The current environment continues to favour a balanced and selective approach. As market leadership broadens, opportunities are emerging across regions, sectors and investment styles. Maintaining diversification, focusing on valuations and earnings fundamentals, and remaining disciplined through changing market conditions remain key components of long-term investment success.

Pharus Resources

Featured Article: Estate Planning Foundations — Building a Legacy with Confidence

A comprehensive wealth plan is about more than managing investments — it is about helping ensure your wealth continues to support the people and causes that matter most. Estate planning is a critical part of that process, providing clarity, reducing complexity, and helping ensure your wishes are carried out.

In our latest article, “Estate Planning Foundations,” our team explores the key elements of effective estate planning and why taking a proactive approach can help protect your family, preserve your wealth, and create confidence for the future.

In this article, we explore:

• Why estate planning matters
  Understanding why a well-structured estate plan is essential for protecting your family, organizing your affairs, and ensuring your intentions are clearly communicated.
• The building blocks of an estate plan
  Exploring the importance of wills, powers of attorney, beneficiary designations, and how these components work together as part of a broader wealth strategy.
• Managing taxes and wealth transfer considerations
  Highlighting how thoughtful planning can help identify potential tax implications and opportunities to improve the efficiency of transferring wealth to future generations.
• The importance of a coordinated approach
  Discussing how collaboration between your advisory team, legal professionals, and tax advisors can help create an estate plan that aligns with your overall financial goals.

Key Takeaway

Estate planning is not simply about preparing for the future — it is about creating confidence today. By taking the time to review and update your estate plan, you can help ensure your wealth is transferred according to your wishes and that your legacy reflects the values and priorities that are important to you.

Source: Click Here for the full article.

If you have experienced a significant life change, such as retirement, a change in family circumstances, or a shift in your financial goals, it may be a good time to revisit your estate plan. Our team is available to help ensure your estate strategy remains aligned with your broader wealth plan.

Financial Planning Feature

Financial Planning Feature: The Biggest Retirement Mistake Isn’t Saving Too Little—It’s Failing to Have a Plan

Retirement is evolving. Longer life expectancies, changing work patterns, inflation and economic uncertainty are prompting Canadians to think differently about how they prepare for the years ahead. According to Fidelity’s 2026 Retirement Report, the most confident retirees aren’t necessarily those with the largest portfolios—they’re the ones with a well-defined plan.

Retirement Planning Trends

• A written financial plan makes a difference. Canadians with a documented retirement plan report significantly higher confidence in their retirement than those without one. Beyond finances, a written plan also improves preparedness for the emotional, social and lifestyle changes that retirement brings.
• Retirement is becoming more flexible. Rather than retiring on a specific date, many Canadians are choosing a phased retirement—working part-time, consulting or pursuing passion projects. For many, continuing to work is a lifestyle choice that provides purpose, engagement and additional financial flexibility.
• Income planning is just as important as saving. While many Canadians focus on accumulating wealth before retirement, far fewer have a strategy for withdrawing it. Creating a tax-efficient withdrawal plan that coordinates RRSPs, TFSAs, non-registered investments, pensions and government benefits can have a meaningful impact on retirement income.
• Inflation and uncertainty remain top concerns. Rising living costs and geopolitical events continue to influence retirement confidence, reinforcing the importance of building flexibility into a long-term financial plan.
• Government benefits are only one piece of the puzzle. Canada Pension Plan (CPP), Old Age Security (OAS) and other government programs provide valuable income, but for most Canadians they should complement—not replace—personal savings and investment income.

Main Takeaways

• Plan before you retire—not when you retire. A comprehensive retirement plan should address not only when you’ll retire, but how you’ll generate sustainable income throughout retirement.
• Review your retirement income strategy regularly. Retirement planning doesn’t end when you stop working. As markets, tax rules and personal circumstances change, your withdrawal strategy should evolve as well.
• Prepare for a retirement that could last 30 years or more. Longevity is one of the greatest planning challenges. Your investment strategy should balance the need for reliable income today with continued growth to help preserve purchasing power over time.
• A financial plan provides confidence during uncertainty. Markets and economic conditions will inevitably change, but a personalized financial plan helps ensure your investment decisions remain aligned with your long-term goals rather than short-term headlines.

Whether retirement is five years away or already underway, taking the time to develop—and regularly review—a written financial plan can provide greater clarity, confidence and peace of mind for the years ahead.

Source: Click Here for Full Details

CIBC Smart Advice Feature

Smart Advice Podcast Spotlight: How can I balance aging parent care and retirement?

As parents age, many Canadians find themselves balancing the desire to support loved ones with the need to protect their own financial future. While caregiving can be emotionally and financially demanding, proactive financial planning can help families navigate these responsibilities while staying on track to achieve their long-term retirement goals.

Key Highlights

• More than 60% of Canadians over age 30 currently support—or expect to support—their parents or in-laws financially.
• Nearly half of caregivers spend approximately $5,000 annually out of pocket to help aging family members.
• Rising healthcare costs, inflation and longer life expectancies make caregiving an increasingly important component of a comprehensive financial plan.
• Early family conversations about finances, healthcare wishes and available resources can provide greater flexibility and reduce stress when unexpected needs arise.
• Understanding available assets—including savings, pensions, insurance, home equity and government benefits—helps families make informed decisions and identify potential funding gaps.

Key Takeaways

• Start planning before care is needed. Early conversations create more options and reduce the pressure of making important decisions during a crisis.
• Incorporate caregiving into your financial plan. A comprehensive plan should evaluate whether your investment strategy and expected rate of return are sufficient to support both your retirement goals and the potential costs of caring for aging loved ones.
• Create a dedicated caregiving budget. Identifying expected expenses, available income sources and establishing a caregiving reserve can help prevent unexpected costs from derailing your retirement plans.
• Protect your own financial future. Supporting parents is important, but it shouldn’t come at the expense of your own long-term financial security. A well-designed plan seeks to balance the needs of both generations.
• Review your plan regularly. Care needs, family circumstances and financial markets evolve over time. Regular reviews help ensure your plan remains aligned with your goals and adapts to changing circumstances.

Planning for aging loved ones isn’t simply about preparing for future expenses—it’s about building a flexible financial roadmap that supports both today’s responsibilities and tomorrow’s aspirations. With thoughtful planning, families can care for those who matter most while maintaining confidence in their own financial future.

Source: Click Here for Full Details

Financial Insights

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.

Leveraging Life Insurance Without Liquidating Investments

For many affluent Canadians, permanent life insurance can play an important role in estate planning, wealth transfer and creating a lasting legacy for future generations. However, one common challenge is determining how to fund significant insurance premiums without reducing investment capital that could otherwise remain invested and continue growing.

An Immediate Financing Arrangement (IFA) is an advanced planning strategy that can help address this challenge by combining permanent life insurance with strategic financing. The objective is to allow individuals to implement a life insurance strategy while preserving their existing investment capital and maintaining financial flexibility.

While an IFA is not appropriate for everyone, it can be a valuable consideration for individuals with significant assets, strong cash flow and long-term estate planning objectives.

What is an Immediate Financing Arrangement?

An Immediate Financing Arrangement involves purchasing a permanent life insurance policy and using the policy’s cash value as collateral to obtain financing from a financial institution.

Rather than using personal savings or selling investments to fund insurance premiums, the policy owner may borrow against the policy to help finance the premiums. This allows their existing investment portfolio to remain invested while creating a future insurance benefit for their estate.

The strategy is designed to improve capital efficiency by allowing assets to continue working toward broader financial goals while also addressing estate planning needs.

How Does an Immediate Financing Arrangement Work? An Example

Consider a successful business owner who wants to purchase permanent life insurance to create a tax-efficient legacy for their family.

Traditional Approach

• The individual purchases a permanent life insurance policy requiring significant annual premiums.
• Premiums are funded using personal cash flow or by selling existing investments.
• Selling investments may reduce future growth potential and could potentially create taxable gains.

Immediate Financing Arrangement Approach

• The individual purchases the same permanent life insurance policy.
• The policy builds cash value over time.
• A financial institution provides financing secured against the policy.
• The financing is used to help fund insurance premiums.
• Existing investment assets remain invested rather than being used to fund the insurance strategy.

The goal is to create the insurance benefit while allowing the individual’s investment portfolio and other assets to continue supporting their broader wealth objectives.

(Example is for illustration purposes only. Actual structures, financing terms and outcomes vary depending on individual circumstances.)

Using Policy Financing to Access Additional Capital

In some IFA structures, individuals may also access financing secured against the cash value of their life insurance policy and use those funds for investment purposes.

For example:

• An individual may borrow against the policy’s cash value.
• The borrowed funds may be invested in income-producing investments.
• Depending on the circumstances and applicable tax rules, the interest expense associated with borrowing to earn investment income may be deductible.

When structured appropriately, this approach may allow investors to:

• Maintain their existing investment portfolio.
• Access additional capital for investment opportunities.
• Potentially improve the after-tax cost of borrowing through available tax deductions.

However, borrowing to invest introduces additional risks, including market volatility, changing interest rates and the requirement to service debt obligations. A careful review is required to determine whether the potential benefits outweigh the additional complexity and risk.

Why Consider an Immediate Financing Arrangement?

An IFA may be worth exploring for individuals who:

• Require permanent life insurance for estate planning, business succession or wealth transfer purposes.
• Have significant investment assets they prefer to keep invested.
• Have strong cash flow and the ability to manage financing obligations.
• Own a business or have complex financial planning needs.
• Are looking for strategies to maximize the value transferred to future generations.

Potential Benefits

Traditional Insurance Funding	Immediate Financing Arrangement
Premiums funded directly from personal capital	Financing may reduce the need to use personal investment capital
Investments may need to be sold to fund premiums	Existing investments may remain invested
Potential loss of future investment growth	Capital may continue supporting broader financial goals
Reduced liquidity available for other opportunities	May provide additional financial flexibility
Creates an insurance benefit	Creates an insurance benefit while improving capital efficiency

Important Considerations

An Immediate Financing Arrangement is a sophisticated strategy that combines insurance, lending and investment planning. It is not suitable for everyone and requires careful consideration of:

• Personal financial objectives.
• Cash flow and liquidity needs.
• Interest rate risk.
• Investment risk.
• Tax implications.
• Estate planning goals.

Successful implementation typically requires coordination between financial advisors, insurance professionals, tax specialists and legal advisors.

Key Takeaways

• An Immediate Financing Arrangement may allow individuals to obtain permanent life insurance coverage without immediately liquidating investment assets.
• The strategy can help improve capital efficiency by allowing existing assets to continue working toward long-term financial goals.
• In certain circumstances, borrowing against policy values and investing proceeds may provide additional planning opportunities, including potential tax advantages when structured appropriately.
• IFAs are generally best suited for individuals with significant assets, strong cash flow and a long-term planning horizon.
• Like any advanced strategy, the benefits and risks should be carefully evaluated before implementation.

We’re Here to Help

At Pharus Wealth Advisory Group, we understand that every family’s financial situation is unique. We are pleased to speak with individuals and families to review their circumstances, explore available planning strategies and determine whether an Immediate Financing Arrangement may be appropriate as part of their broader wealth management plan.

Our goal is to help clients make informed decisions that align their investment, insurance, tax and estate planning objectives.

Fun Feature: Financial Facts: Did You Know?

Behind every financial statistic is a story. This month, we’re highlighting a few interesting facts about Canada’s markets, economy and wealth landscape—and the lessons they can provide for investors.

The Toronto Stock Exchange Has Been Around for More Than 160 Years

The Toronto Stock Exchange (TSX) was established in 1861, making it one of North America’s oldest stock exchanges. What began with just 18 listed securities has grown into one of the world’s largest exchanges, helping Canadian companies access capital and grow.

Investment takeaway:

Markets have changed significantly over the past century, but the importance of investing in quality businesses and maintaining a long-term perspective remains the same.

$1 Million Today Is Not the Same as $1 Million in the Past

For many Canadians, reaching a $1 million portfolio has long been considered a major financial milestone. However, inflation has reduced the purchasing power of money over time.

Planning takeaway:

Successful retirement planning is not just about reaching a certain dollar amount—it is about ensuring your assets can support your lifestyle and maintain purchasing power throughout retirement.

The Power of Compounding Rewards Patience

A $10,000 investment earning an average annual return of 7% could grow to approximately $20,000 over 10 years and approximately $40,000 over 20 years (before fees and taxes).

Investment takeaway:

Time is one of the greatest advantages an investor has. Staying invested and allowing compounding to work can have a meaningful impact on long-term wealth creation.

Final Thought

Financial markets will continue to evolve, but the principles of successful investing remain consistent: start early, stay disciplined and focus on your long-term financial goals.

Click here to visit Pharus Resources.

PharusWealth 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