Welcome to the September Edition of Pharus Perspectives

With summer coming to an end and fall settling in, September is a natural time to refocus, revisit priorities and look ahead to the upcoming months. In this edition of Pharus Perspectives, we explore a range of investment and financial planning topics, along with a few lighter ideas to enjoy as we head into fall.

In This Month's Edition

Markets & Investing: We look at the continued AI investment boom and the infrastructure, semiconductors and technology driving it, along with our observations on the broader market environment.

Physician Corporation Planning: Our very own Kelvin Chan explores important considerations for incorporated physicians approaching retirement, including whether to retain, restructure or wind down their corporation.

Financial Planning: We highlight an often-overlooked aspect of estate planning—making sure important documents and financial information can actually be found and accessed when they are needed.

Investment Spotlight: We take a closer look at semiconductor ETFs and the companies behind the computing power supporting the AI revolution.

TIFF & Fall Entertainment: Finally, we take a break from markets and planning to highlight some of the films generating buzz from this year's Toronto International Film Festival and put together a few titles worth adding to your fall watchlist.

We hope you enjoy this month's edition of Pharus Perspectives and, as always, please feel free to reach out to our team to discuss any of the topics covered in this month's newsletter.

Monthly World Markets Report

AI and the Buildout Behind the Boom

Introduction

Artificial intelligence continues to be one of the most important themes influencing financial markets in 2026. While much of the initial excitement focused on how AI could transform businesses, the investment story is increasingly shifting toward the massive infrastructure required to support its growth.

The latest CIBC Monthly World Markets report examines this next phase of the AI cycle, from the enormous capital expenditures planned by the world's largest technology companies to the companies supplying the semiconductors, memory, power, cooling and data-centre infrastructure needed to support them. The report also highlights an important counterpoint: even strong long-term investment themes can experience significant volatility when expectations, leverage and market positioning become stretched.

Key Points

• AI investment is moving from applications to infrastructure. The focus is increasingly on the physical and technological infrastructure needed to run AI at scale, including data centres, semiconductors, computing capacity, power and cooling.
• The scale of spending is extraordinary. Capital expenditures by major technology “hyperscalers” are expected to exceed US$1 trillion next year, creating significant opportunities across the broader AI supply chain.
• The beneficiaries extend beyond the technology giants. Companies providing specialized memory, semiconductor manufacturing and packaging, electrical equipment, data-centre construction and cooling systems are benefiting from the current investment cycle.
• Cash flow matters. The enormous cost of AI infrastructure is putting pressure on the free cash flow of some of the largest technology companies. Investors are therefore looking more closely at how quickly these investments can translate into revenue and earnings.
• Supply constraints can create attractive opportunities. Specialized components such as High-Bandwidth Memory (HBM) are in high demand and limited supply, giving certain suppliers pricing power and greater visibility into near-term earnings.
• Leverage can amplify market movements. South Korea's experience this year illustrates how enthusiasm around AI and semiconductors can be magnified by leveraged investments. When sentiment changes, forced selling can turn a normal correction into a much sharper market decline.
• Fundamentals remain important. Despite periods of volatility, earnings growth among many high-quality technology, semiconductor and infrastructure companies remains resilient, while the largest technology companies continue to maintain substantial cash generation and strong balance sheets.
• The market is becoming more selective. Following the volatility earlier this year, some of the speculative excess surrounding AI has moderated. Investors are increasingly distinguishing between companies benefiting from genuine underlying demand and those whose valuations rely heavily on future expectations.

Key Takeaway

The AI investment opportunity may ultimately be much broader than the companies developing AI applications. The infrastructure required to power the AI revolution represents a significant investment cycle in its own right.

For investors, the key is separating the long-term structural opportunity from short-term market enthusiasm. AI spending is creating tangible demand today, but the scale of investment also means expectations for future returns will remain under scrutiny.

As a result, companies with strong fundamentals, established demand, pricing power and visible cash flows may become increasingly important as the AI investment cycle matures.

With markets remaining sensitive to interest rates, geopolitics and changing expectations around AI spending, volatility is likely to persist. However, the underlying buildout of AI infrastructure remains a significant theme for investors to monitor.

We encourage you to read the full CIBC Monthly World Markets report for a deeper look at the AI buildout, the companies benefiting from it and the risks emerging as investment and market expectations continue to rise.

For a more detailed look at current market conditions, valuations, regional performance and the investment themes shaping 2026, we encourage you to read the full CIBC World Markets report.

Monthly Performance Update

Market Performance- August 31st , 2026
Index	1 Month	3 Months	YTD	1-Year	3-Year	5-Year
S&P TSX	3.1%	4.9%	16.0%	29.9%	24.8%	15.3%
S&P 500	2.7%	1.7%	13.1%	20.4%	21.0%	12.8%
NASDAQ	3.9%	-2.2%	13.5%	22.9%	23.4%	11.6%
MSCI EAFE	2.0%	4.1%	14.2%	22.2%	18.8%	9.9%
MSCI Emerg.	3.4%	-1.1%	24.4%	39.7%	23.8%	8.7%
MSCI World	2.5%	2.1%	12.1%	18.9%	18.5%	9.6%
FTSE Canada Bond	-0.2%	-1.3%	0.4%	2.0%	4.1%	0.3%

Source: Click Here for Monthly World Market Report

Portfolio Strategy Update

Our Market Observations

Financial markets have continued to demonstrate resilience, with corporate earnings and economic activity holding up reasonably well despite a more challenging and uncertain backdrop. At the same time, the investment environment has become increasingly nuanced, with higher energy prices, renewed inflation concerns and rising longer-term bond yields influencing both market expectations and valuations.

Several developments remain particularly important to watch. Oil prices above $100 per barrel and ongoing geopolitical tensions have added to inflationary pressures, while the rise in longer-term bond yields reflects changing expectations around the path of interest rates and the broader economic outlook.

The significant investment associated with artificial intelligence is another area attracting considerable attention. Technology and semiconductor companies have performed strongly, and investors are increasingly assessing whether the pace of AI-related capital spending and earnings growth can be sustained. While the long-term potential of AI remains significant, the scale of investment has increased the importance of valuations, cash flows and evidence of tangible returns.

In Canada, economic conditions have shown signs of improvement, although trade uncertainty remains an important consideration. U.S. tariffs, Canadian countermeasures and the broader evolution of North American trade relationships continue to influence the economic outlook and business sentiment.

Within portfolios, diversification across asset classes remains an important consideration. Fixed income, alternative investments and structured solutions can provide different sources of income, diversification and risk management, depending on the objectives and circumstances of each portfolio.

Overall, our observations remain constructive on the long-term outlook while recognizing that markets are likely to remain sensitive to inflation, interest rates, geopolitics, trade policy and corporate earnings. In this environment, fundamentals, valuation and diversification remain important considerations as investors navigate changing market conditions.

Pharus Resources

Special Feature | Planning for a Physician Corporation at Retirement

For incorporated physicians, retirement is not simply about ending their medical practice—it is also about deciding what happens to the wealth accumulated inside their corporation. In our latest blog, our very own Kelvin Chan explores the key considerations for physicians approaching this transition, including whether to keep, restructure or gradually wind down the corporation.

Key Points

• Retirement changes the role of the corporation. A corporation that was once primarily an accumulation vehicle can become an important source of retirement income, investment capital and estate wealth.
• There is no one-size-fits-all approach. The right strategy depends on the amount of corporate wealth, tax accounts, personal assets, retirement-income needs, family circumstances and provincial professional-corporation rules.
• Corporate wealth doesn't necessarily need to be withdrawn immediately. Retaining investments corporately may provide flexibility to determine when and how wealth is distributed personally over the course of retirement.
• Withdrawal sequencing matters. Corporate investments should be considered alongside RRSPs, RRIFs, TFSAs, CPP, OAS and other sources of retirement income. The question isn't simply how much to withdraw, but where the next dollar of retirement income should come from.
• Tax accounts can have a significant impact. CDA, RDTOH and GRIP can influence how corporate wealth is ultimately distributed and should be considered before significant withdrawals or a corporate wind-down.
• Estate planning should be part of the decision. Maintaining a corporation can provide flexibility, but it can also add complexity to an estate. The ultimate purpose of the remaining corporate wealth should help guide the strategy.

Read the Full Blog

For physicians who have accumulated significant wealth inside a professional corporation, the transition into retirement can be one of the most important planning opportunities of their careers.

We invite you to read Kelvin's full article, “Physician Corporation at Retirement in Canada: Keep, Restructure or Wind Down”, for a deeper look at the strategies and considerations involved in turning corporate wealth into retirement income and ultimately family wealth.

Read the full article: Physician Corporation at Retirement in Canada: Keep, Restructure or Wind Down

Financial Planning Feature

Is Your Estate Plan Accessible?

Introduction

When we think about estate planning, the focus is often on having the right documents in place — a will, powers of attorney, insurance policies and investment records. But having the documents is only part of the equation. If your family or executor doesn't know where those documents are or how to access them, even a well-prepared estate plan can become difficult to administer.

A recent article from MoneySense highlights an often-overlooked issue: storing important documents and valuables in a safety-deposit box. While these boxes can provide security, certain items may not be readily accessible when they are needed most. The broader lesson is that an effective estate plan should include not only the right documents, but also a clear roadmap for the people who may eventually need to find and access them.

Key Points

• Security and accessibility are both important. A safety-deposit box can be useful for protecting valuables and important documents, but storing something securely doesn't necessarily mean it will be easily accessible to your family.
• Be thoughtful about where you store your will. Access to a safety-deposit box can become complicated following the death of the box holder. This can create an unintended problem if the original will is stored inside the box.
• Important financial information can be difficult to locate. Life insurance policies, investment accounts and other financial assets may be overlooked if family members or the executor don't know they exist or where the documentation is located.
• Someone should know where important information is kept. Your spouse, trusted family member, executor or attorney may need to know the location of important documents, the existence of a safety-deposit box and how to access it.
• Create an inventory of your financial life. A simple record identifying your major assets, insurance policies, financial institutions, important documents and where they are located can make estate administration significantly easier.
• Don't overlook digital information. With more financial information being stored online, knowing where physical documents are kept is only part of the challenge. Your family may also need to know which institutions hold your accounts and where important records can be found.
• Review your plan regularly. Financial circumstances change. New accounts, insurance policies, property purchases and other major financial decisions should be reflected in your estate-planning records.

Key Takeaways

The biggest lesson isn't necessarily whether you should have a safety-deposit box. It's whether someone you trust could find and access everything they would need if you were no longer able to manage your affairs.

Consider whether:

• Someone knows where your will and powers of attorney are located.
• Your executor knows which financial institutions you deal with.
• Your family could identify your major investment and bank accounts.
• Your life insurance policies and other important documents are properly documented.
• Someone knows whether you have a safety-deposit box and where the key is.
• You have a current inventory of your important assets and documents.

A well-organized estate plan can help reduce unnecessary delays, uncertainty and stress for the people responsible for carrying out your wishes.

The goal isn't simply to protect your documents — it's to make sure the people who need them can find them when the time comes.

Read full article: The safety-deposit box mistake that can leave your family scrambling

CIBC Smart Advice Feature

CIBC Smart Advice: Is Your Money Keeping Up With Your Life?

Introduction

As income and wealth grow, it can be easy for spending to grow alongside them. This month's CIBC Smart Advice conversation explores how to build a healthier relationship with money and, more importantly, how to ensure that our financial decisions support the life we actually want to live.

Host Carissa Lucreziano is joined by Jessica Moorhouse, personal finance expert, author and host of the More Money podcast. Their conversation covers lifestyle creep, spending habits, the influence of our upbringing on financial decisions, and how increasing income can be used more intentionally to build long-term financial security.

Key Points

• More income doesn't automatically create more financial freedom. As earnings increase, it can be tempting to immediately upgrade our lifestyle. Without a clear plan, higher income can simply lead to higher spending.
• Lifestyle creep can happen gradually. A nicer home, more expensive car, additional travel or other upgrades may each seem manageable individually, but together they can significantly change a household's financial trajectory.
• Our relationship with money is often shaped by our upbringing. Moorhouse discusses how people can either replicate or reject the financial behaviours they experienced growing up. Recognizing those patterns can help create a more intentional approach to saving and spending.
• There needs to be a balance between saving and enjoying your money. Financial discipline doesn't necessarily mean eliminating discretionary spending. Establishing a defined amount of “fun money” can create room to enjoy the present while maintaining appropriate financial guardrails.
• Income is one of the most powerful wealth-building tools. Rather than allowing every increase in income to flow into lifestyle upgrades, directing a portion toward savings, investments and long-term goals can significantly accelerate financial progress.
• Give your money a purpose. The conversation emphasizes using financial goals as a “north star.” Whether the objective is buying a home, funding education, retiring comfortably or achieving greater financial independence, decisions become easier when they are connected to a specific goal.
• Think in different time horizons. When receiving a raise or windfall, it can be helpful to separate funds according to short-, medium- and long-term objectives rather than treating all available cash the same way.
• Focus on what you can control. Markets, inflation and the broader economy can create uncertainty, but individuals can still make meaningful progress by reviewing spending, eliminating unnecessary expenses, continuing to learn and making deliberate financial decisions.
• Financial planning isn't a one-time exercise. The conversation reinforces the value of periodically stepping back and looking at the entire financial picture to identify opportunities, potential blind spots and areas that may need adjustment.

Key Takeaways

The central message from this month's conversation is simple: the goal of earning more isn't necessarily to spend more — it's to create more choices.

As income and wealth increase, having a clear understanding of what matters most can help ensure that additional financial resources are directed toward meaningful goals rather than simply being absorbed by a higher cost of living.

A healthy financial plan should leave room for both enjoying the present and building for the future. Creating clear priorities, establishing appropriate spending boundaries and putting excess income to work can help turn higher earnings into lasting financial progress.

Perhaps most importantly, there is no need to have everything figured out at once. Small, consistent improvements in spending, saving and investing can compound over time, and it's never too late to reassess your financial habits and make a change.

We encourage you to listen to the full CIBC Smart Advice conversation with Jessica Moorhouse for a deeper discussion on lifestyle creep, financial habits, increasing your income and building a healthier relationship with money. 

Read the transcript: Is your money keeping up with your life?

Investment Feature

Investing in the Chips Behind the AI Revolution

Introduction

Artificial intelligence has quickly become one of the most important investment themes in global markets. While much of the attention has focused on the companies developing AI applications, an equally important part of the story is happening behind the scenes: the semiconductor industry that provides the computing power required to make AI possible.

AI models require increasingly sophisticated processors, high-speed memory and advanced semiconductor manufacturing. As technology companies continue investing heavily in data centres and computing infrastructure, semiconductor companies are positioned at the centre of this investment cycle.

For investors looking to gain exposure to this theme, semiconductor-focused ETFs offer a way to participate in the broader industry without relying on the success of a single company.

Understanding the Semiconductor Ecosystem

What exactly does a semiconductor ETF give investors exposure to?

The connection between AI and semiconductors can be simplified into a straightforward chain:

AI Applications → Data Centres & Computing Infrastructure → Processors & High-Speed Memory → Semiconductor Manufacturers → Semiconductor Equipment & Technology

The important point is that AI investment creates demand at multiple stages of this chain. An AI application may be the most visible part of the story, but it cannot operate without the computing infrastructure, processors, memory and manufacturing technology underneath it.

A semiconductor ETF can provide exposure to several of these businesses through a single investment, rather than requiring investors to select individual companies.

Investment Ideas

Broad Semiconductor ETFs

Traditional semiconductor ETFs provide diversified exposure to companies involved in the design, manufacturing and equipment required to produce semiconductors. Rather than attempting to identify the individual company that will ultimately benefit most from AI spending, an ETF can provide exposure across the broader semiconductor ecosystem.

This can include companies involved in:
*AI processors and GPUs
*Memory chips
*Semiconductor manufacturing
*Semiconductor equipment
*Networking and communications technology

For investors who believe semiconductor demand will continue to grow but don't want to select individual stocks, a diversified semiconductor ETF can provide a broad-based approach to the sector.

AI-Focused Semiconductor ETFs

A newer generation of ETFs takes a more targeted approach, focusing specifically on companies expected to benefit from the AI semiconductor value chain.

These funds may place greater emphasis on companies involved in AI processors, specialized chips, memory and other technologies directly connected to AI workloads. This can provide greater exposure to the AI theme, but it also means greater concentration and potentially greater volatility.

The Broader Semiconductor Ecosystem

One of the interesting aspects of the current cycle is that AI demand extends well beyond the companies producing the most recognizable AI chips.

AI data centres require memory, advanced packaging, networking equipment, power management and increasingly sophisticated manufacturing equipment. This creates opportunities throughout the semiconductor supply chain.

In other words, investors don't necessarily have to identify the ultimate “winner” in AI to participate in the investment cycle.

Is This Timely?

The scale of investment taking place across the AI ecosystem is substantial. Major technology companies are committing enormous amounts of capital to data centres and computing infrastructure, creating demand for the chips and related equipment required to support those investments.

At the same time, the semiconductor industry has become an increasingly important part of the AI investment story. Demand for specialized memory and computing capacity has created supply constraints in certain parts of the market, while companies across the semiconductor ecosystem are investing to expand capacity.

However, investors should also recognize that semiconductor stocks can be highly cyclical and sensitive to expectations. Strong growth expectations can lead to significant share-price appreciation, but disappointment around AI spending, economic growth or corporate earnings can result in sharp corrections.

This makes diversification particularly relevant. A semiconductor ETF can reduce the company-specific risk associated with owning an individual chipmaker, but it remains a concentrated sector investment and should be considered accordingly within a broader portfolio.

Key Takeaway

The AI investment opportunity extends well beyond the companies developing AI software. Semiconductors are the essential building blocks that allow AI to operate at scale, creating potential opportunities throughout the industry's global supply chain.

For investors interested in participating in this theme, semiconductor ETFs provide a way to gain diversified exposure to an industry that sits at the centre of the AI infrastructure buildout.

The opportunity, however, needs to be balanced against the sector's volatility, cyclical nature and sensitivity to expectations. Rather than viewing semiconductor ETFs as a replacement for a diversified portfolio, they may be better understood as a targeted way to gain exposure to a specific long-term investment theme.

As the AI buildout continues, the companies supplying the computing power, memory and infrastructure behind the technology will remain an important area for investors to watch.

The Fun Stuff

From TIFF to Your Living Room: 6 Films to Put on Your Watchlist

Toronto's film festival may be winding down, but for movie lovers, TIFF is really just the beginning. Every September, some of the year's most anticipated films arrive in Toronto before heading into theatres, streaming services and, in many cases, the awards-season spotlight.

Rather than trying to see everything at TIFF, here are six films that generated significant attention this year and are worth keeping on your radar for the months ahead.

1. The Debut
Starring: Julianne Moore, Paul Giamatti  |  Release: December 11, 2026

One of the festival's biggest crowd-pleasers, The Debut is a comedy from Jesse Eisenberg about a suburban mother who throws herself into community theatre in an attempt to finally feel seen. Julianne Moore drew particularly strong praise for her performance alongside Paul Giamatti.

Why watch it: A funny, accessible film with two heavyweight actors playing off each other—and one of the titles that generated some of TIFF's strongest audience reactions.

2. I Play Rocky
Starring: Anthony Ippolito, Tracy Letts  |  Director: Peter Farrelly

If you enjoyed Rocky, this behind-the-scenes story of how Sylvester Stallone fought to get the original film made may be one to put at the top of your list. The film was repeatedly identified as one of TIFF's major crowd-pleasers, with festival coverage highlighting its enthusiastic reception.

Why watch it: An entertaining Hollywood underdog story about another Hollywood underdog story.

3. Elsinore
Starring: Andrew Scott  |  Release: November 20, 2026

Andrew Scott portrays Ian Charleson, the celebrated British actor who took on the role of Hamlet at London's National Theatre while living with AIDS. The film has attracted considerable attention for Scott's performance, with TIFF coverage emphasizing the emotional depth and humanity he brings to the role.

Why watch it: For anyone who appreciates great acting, this is one of the performances coming out of TIFF that is likely to generate plenty of conversation during awards season.

4. Wild Horse Nine
Starring: John Malkovich, Sam Rockwell  |  Director: Martin McDonagh

Martin McDonagh—the writer-director behind In Bruges, Three Billboards Outside Ebbing, Missouri and The Banshees of Inisherin—returns with a darkly comic story involving two former CIA colleagues travelling to Easter Island. The combination of McDonagh, Malkovich and Rockwell made this one of the festival's more anticipated titles, and critics singled out both the performances and the film's distinctive tone.

Why watch it: If you like smart, dark comedy with unpredictable characters, this could be one of the more interesting films to emerge from TIFF.

5. Being Heumann
Starring: Ruth Madeley

Based on the life of disability-rights advocate Judith Heumann, Being Heumann tells the story of an individual whose activism helped reshape the way society approaches accessibility and disability rights. The film received a particularly warm response at TIFF, with Ruth Madeley's performance among those highlighted by festival coverage.

Why watch it: A compelling real-life story that combines history, activism and an exceptionally personal human story.

6. Tender Loving Care
Director: Mike Leigh

For something quieter, Tender Loving Care offers a very different kind of movie experience. Veteran British filmmaker Mike Leigh explores friendship, aging and the ordinary moments that connect people. Vogue included the film among its favourite titles from this year's festival, describing it as a thoughtful examination of everyday relationships and the passage of time.

Why watch it: A more understated choice for a quiet evening at home—particularly if you prefer character-driven films over blockbusters.

The TIFF Takeaway

One of the most interesting things about TIFF is that you don't necessarily have to be a serious film buff to enjoy the festival. Many of the films that generate the most attention are ultimately stories about familiar themes: ambition, family, friendship, resilience and the pursuit of something that matters.

This year's lineup offers plenty of options—from a Hollywood origin story in I Play Rocky to comedy in The Debut, dramatic performances in Elsinore and Wild Horse Nine, and inspiring true stories such as Being Heumann.

So, rather than trying to catch every film at TIFF, consider putting a few of these titles on your fall watchlist. You may end up discovering one of the year's most memorable movies before everyone else does.

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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