[A presentation title slide with a white background. The top left features the CIBC logo in red. Below, in smaller red text, it reads "R&R INVESTMENT PARTNERS." Centered and in large bold red text is "OUTLOOK 2026." Below this, in smaller red text, is "January 28, 2025." In the top right corner, "CIBC PRIVATE WEALTH" is written in red.]

 

 

00:00:05.881

[Munro, Ian]Good afternoon, everyone. Thank you all for tuning in. My name is Ian Munro. I'm here with my partners, Randy Yozipovic and Harrison Love. Thanks for joining us for our Outlook 2026 presentation. Before we get into the presentation, just a reminder that there is a Q and A button at the top of your screen.

So if you do have questions that you want to ask us throughout the presentation, please feel free to enter them there. We'll dedicate some time after the presentation to go through the questions and you can answer the ask them anonymously or with your name, or if there's questions that you wish to ask after the fact to one of us directly, please feel free to reach out via e-mail or phone call and happy to chat at any time.

 

[A slide with a solid burgundy background. Large white quotation marks are at the top left, followed by the main text in large white font: "Our mission is to simplify your financial life so you can live your life doing what you truly love." Below, in italicized white font: "Because everyone deserves straightforward advice, where you are treated like family."]

 

Before we get into the formal part of the presentation, just a reminder and we review this every year of our group's mission statement. Our mission is to all of you to simplify your financial life so you can live your life doing what you truly love because everyone deserves straightforward advice where you're treated like family. This mission statement was created by us. It's near and dear. I can promise you it's what keeps us all coming to the office on a daily basis. We created this in the sense that if we did not work in the wealth and investment management industry, what would we be looking for in advisors? And this is exactly what it is.

 

[A slide titled "How we serve you" in large burgundy text at the top left. The slide is divided into two sections with grey headers. The top section, labeled "Wealth Advisors," displays three individuals in business attire, each with their name, credentials, title, company, phone number, and email address in black text beside them. The bottom section, labeled "Who do you call if you need..." features three individuals in business attire, each with their name, credentials, title, company, phone number, and email address in black text beside them.]

 

We serve all of our clients as a collective. This is a reminder that there is three of us on this presentation today, myself, Randy and Harrison. But there's a lot of depth behind the three of us, whether it's Tanya, Pedro, Colton, Vanessa.

 

[A slide titled "How we serve you" in large burgundy text at the top left. The grey header reads "Who do you call if you need..." Four individuals in business attire are shown, each with their name, title, company, phone number, and email address in black text beside them. The individuals are arranged in two rows.]

 

 

Eliora, Kate and newest to join Viha. Everything we do is a collective conversations that we have service requests that are done. It is a team approach and the service that and the level of service that you're accustomed to cannot be completed without all of the horsepower that we have behind the three of us.

 

[A slide split vertically: the left half is dark grey with "Agenda" in large white text; the right half is white with a numbered agenda in burgundy text:

1. 2025 overview: interest rates, CRA waffling, large deficits, volatility, the Canadian dollar, and expensive stocks
2. R&R Investment Partners’ strategies
3. In focus: Global Equity, Dividend Growth, Income Note Strategies
4. Real Life: Currency hedging, should you RRIF early?
5. Conclusions: Sticking to your plan and achieving your goals]

 

 

As far as the agenda today, we'll do an overview of what happened in 2025. It was a busy year. Harrison will then chat about some of our investment strategies and go and focus on a few of the different ones of global equity, dividend growth and income notes. And then Randy will talk a little bit about managing your financial life in real life, some strategies around currency hedging and retirement income funds, and then some conclusions around sticking to your plan and achieving your goals.

 

[The slide title in burgundy reads "2025: What happened." Bullet points in burgundy and black text describe:

• Central banks continued cutting interest rates

o Lower GIC rates

o Lower borrowing costs

o A good year for bonds and stocks

• The newly formed Government of Canada cancelled the proposed increase to the capital gains tax and incurred another significant deficit

o A win for those with Capital Gains

o Deficits = silent taxes + money printing + inflation]

 

 

So what happened in 2025? It was another busy year. We saw new governments form in Canada, the United States. We saw market volatility.

We saw a whole bunch of different things take place. Some of the key themes, though, that we're going to cover today, central banks,

they continued cutting interest rates. So what this means is obviously when rates go down, lower borrowing costs, unfortunately lower cash rates and GIC rates for investors, but ultimately it can lead to a good year

for bonds and stocks and that was the case. We did see the newly formed government in Canada thankfully cancelled the proposed

increase to the capital gains exemption tax while simultaneously

incurring another significant deficit. Obviously canceling the capital gains exemption is or the raise to it is great for those with capital gains. But again, a reminder about deficits. This is a silent tax. This equals more money printed. And ultimately more inflation.

 

[The slide title in burgundy reads "2025: What happened." Bullet points in burgundy and black text describe:

• Stock market volatility returned due to tariff concerns

o However, the market rebounded proving again that “buy the dip” is a sensible strategy for long term money.

• The Canadian dollar is in a historically low band of 71 to 73 cents USD
• The S&P 500’s yield is now as low as it was in the year 2000: Things are expensive]

 

We did see a return of stock market volatility. A lot of this due to the tariff concerns coming from the United States. 2024,as a reminder, was a anomaly in markets where we saw very little market volatility. The only volatility we really did see was upward volatility and nobody minds that at all, but this is a reminder that you know stock markets do have risks associated with it, volatility is the cost of admission, the tariff concerns did create some turbulence in the markets in February, March and April, but it did prove again that buying the dip is a sensible strategy for long term money. So a reminder if there is capital, capital available for investing that is not meant for the near term when markets do pull back and there is opportunity there presented to deploy your money in your capital in a sensible manner. We also saw the Canadian dollar in a historical low band of around 71 to 73 cents versus the United States dollar. We did see things trade as low as 67 1/2 cents and roughly around 70 as high as around $0.74 and we've seen the S and P 500 yield now as low as it was in the year 2000, meaning things are expensive from a valuation perspective. Valuations are stretched and as stock prices go up, the yields or companies that are paying a dividend yield, that means they're compressed and the cash flow that investors will be receiving is considerably lower than it was five years ago.

 

[The slide title in burgundy reads "2025: Asset class returns." Bullet points in burgundy and black text list asset class returns and rates:

• S&P/TSX Composite (Total Return): 31.7%*
• FTSE Canada Universe Bond Index: 2.6%*
• S&P 500 Index (USD, Total Return): 17.9%*

o S&P 500 Equal Weight Index (USD, Total Return): 11.4%*

• 1-year deposit rates:**

o High: 3.00% (Jan 1, 2025)

o Low: 2.40% (Oct 22, 2025)

• Income note coupons: 9.0%+
  Source: *Source for the S&P/TSX Composite, FTSE Canada Universe Bond Index, and the S&P 500 Index is Bloomberg. Source for the S&P 500 Equal Weight Index is the S&P 500 Equal Weight Index Factsheet. *Source: YCharts. For GIC terms of one year or less, simple interest is paid at maturity. For GIC terms of greater than one year simple interest is paid annually or compound interest is calculated annually and paid at maturity. For more information about this product, please contact your Investment Advisor. GIC deposit rates are as of December 31, 2025.]

 

As far as asset class returns for the year, as I mentioned, it was a strong year for equity markets and debt markets. The TSX composite total return was around 32%. The Canadian bond index was around 2 1/2%. The S and P 500 had another strong year of around 18 percent and interestingly,

similar to 2024, the equal weight index, meaning if you own all of the names in the S and P 500 equally versus market cap weighting

like a traditional index, the return is much, much lower. Around 11 1/2%.

It's funny how in February, March, April, with the onset of the tariff concerns, I don't think a lot of people were anticipating that the Canadian market would dramatically outperform the US market, but that was the case. And that was largely driven by the weighting of materials and commodities in the the TSX. And again the S and P 500 returns being propped up by a lot of the big tech names. We saw the deposit rates in Canada have a high at the start of the year of around 3%. And now sitting at a low of around two 2 - 4%. So again the return that you're receiving on your risk free assets or your cash assets considerably less from

12 months ago and our income note strategy which Harrison will be chatting about more in depth. The coupons are still yielding roughly 9 – 9 plus percent.

 

[The slide title in burgundy reads "Five-year GIC rates and five-year fixed mortgage rates." A chart displays two lines: one in purple for "Canada 5-year Conventional Mortgage Lending Rate" and one in orange for "Canada 5 Year Guaranteed Investment Certificates Rate." Key points are labeled: purple line shows Hi: 5.35%, Low: 5.05%, and value 5.06%; orange line shows Hi: 3.25%, Low: 2.75%, and value 2.75%. The horizontal axis is labeled with months of 2025, and the vertical axis shows percentage rates.
Source: YCharts. As of December 31, 2025.]

 

 

A reminder of five year GIC rates and fixed rate mortgages. So both are lower. Obviously this means three things. Tougher time for savers. As rates have come down, you're earning less on your cash. It is a better time for borrowers and those that are renewing debt and ultimately a better time for. Bond and dividend stock investors. As rates go down, people are looking to deploy that money that was sitting on the sidelines in cash and invest in higher yielding investment classes like dividend stocks or bonds.

 

[The slide title in burgundy reads "Equity market volatility returned to normal." A chart displays the CBOE S&P 500 Volatility Index (^VIX) Level from 2020 to 2025. The line is purple, showing fluctuations with a peak labeled Hi: 82.69 and a current value of 14.95. The average is marked as 21.00 AVG. The horizontal axis shows years, and the vertical axis shows volatility levels.
Source: YCharts. As of December 31, 2025.]

 

 

I mentioned equity market volatility returned. This is normal and we have to remember that as I said earlier, the cost of admission to the higher

returns received in the equity markets is volatility. So again a reminder when markets get choppy because it's not a matter of if it's when there will always be some something that will create uncertainty in the equity markets. If you have cash for spending, that's where you can keep your defensive money. If you have cash that's meant not for spending and can be invested long-term, think about using these opportunities as a place to deploy it equities and equity markets. It is the only asset class in the world that I can think of that when it goes on sale, people choose not to buy. They will wait till that asset class goes back to full price before they reinvest, obviously leaving themselves out of the opportunity or the opportunity for investment.

 

[The slide title in burgundy reads "Rebound from Liberation Day" on the left. A chart titled "YTD S&P 500 vs Select Goldman Sachs Index Returns" compares several index returns from January to September 2025. The chart shows multiple colored lines for different indexes, with key events marked: "April 8th: Trump suspends 'Liberation Day' tariffs" and "Q3" highlighted with a red arrow. Below the chart, a table summarizes index returns for Q3 2025: S&P 500 Index (7.8%), Goldman Sachs AI Leaders Index (16.6%), Goldman Sachs Unprofitable Tech Index (37.6%), Goldman Sachs Low Earnings Quality Index (20.4%), Goldman Sachs High Earnings Quality Index (4.3%), Goldman Sachs High Beta Index (9.4%).
Source: Mackenzie Investments, Bluewater Team, Mackenzie Bluewater Canadian Growth Mandate: 2025 Year-to-Date Review. As of November 6, 2025.]

 

These next couple of charts just show a little bit around the inequality of returns that happened in the equity markets this year. Since the quote unquote Liberation Day of tariffs, we saw unequal returns in in the equity markets. The S and P 500 traded down just over 20% from the start of the year to the bottom of the quote unquote Liberation Day. And then particularly in Q3,you can see some of these uneven returns. We saw the S and P 500 in Q3 return around 8%. We saw the unprofitable tech sector in the United States trade up around 40%. Meanwhile, high quality earning companies, companies that have the ability to grow earnings and have sustainable growth, were only up four. So you're rewarded more for investing in in less quality and more speculation than you were investing in quality businesses.

 

[The slide title in burgundy reads "Rebound from Liberation Day" on the left. A chart titled "YTD Canada index returns" compares several Canadian indexes from January to September 2025. The chart displays four colored lines: S&P/TSX Composite Index (dark blue), MSCI Canada Quality Index (light blue), S&P/TSX Composite High Beta Index (orange), and S&P/TSX Materials Index (green). Important events are marked: "April 8th: Trump suspends 'Liberation Day' tariffs" and "Q3" highlighted with a red arrow. Below the chart, a table summarizes index returns for Q3 2025: S&P/TSX Composite Index (11.8%), MSCI Canada Quality Index (3.0%), S&P/TSX Composite High Beta Index (34.9%), S&P/TSX Materials Index (37.4%).
Source: Mackenzie Investments, Bluewater Team, Mackenzie Bluewater Canadian Growth Mandate: 2025 Year-to-Date Review. As of November 6, 2025.]

 

Similar story in Canada, we saw markets trade down to the to roughly the liberation day and then trade well up particularly in Q3 and unequally though with the TSX trading in Q3 up around 11 almost 12%. Meanwhile,

the quality index only up 3 and the materials sector up around 38%. So again, this was a big driver for the success of the TSX.

 

[The slide title in burgundy reads "2025: Annual returns and intra-year declines." The main chart compares S&P 500 intra-year declines (red dots and percentages below the zero line) versus calendar year returns (grey bars above the zero line) from 1980 to 2025. The chart demonstrates that despite average intra-year drops of 14.2%, annual returns were positive in 35 of 46 years. The horizontal axis displays years, and the vertical axis displays percentages.
Source: JP Morgan Asset Management, Market Insights, Guide to the Markets | U.S. | 1Q 2026 | As of December 31, 2025.]

 

And finally, my last slide on volatility, we have to remember that even in a positive year like last year and we've seen this in many years dating back through this slide, you will have pullbacks even in a positive year. So again, just keeping in mind. That market volatility is normal. It happens. It happens all the time. Our job as advisors, as portfolio managers, is walk you through that volatility and make sure that if there is opportunity to take advantage of, we do so and also to keep a level head. When we see things getting a little chaotic in in the markets, in politics around the world, there's always going to be news stories and cycles of media that is meant to provide fear into us and that can cause market disruption. So this is normal. It will always happen and stay the course is usually the best response to market volatility. And with that, I'm going to pass things over to Harrison to talk a bit about our investment strategies.

 

[A minimalist slide with a white background. Centered in large burgundy text is "R&R Investment Partners’ Strategies."]

 

00:11:10.113

[Love, Harrison] Thank you, Ian. So we've got our investment strategy performance here for 2025 on the next slide here. If you can just go to the next slide in which has been in line with our expectations after the sharp correction and rebound in the early part of 2025, the markets did finish pretty strong, but there as Ian mentioned,there are some variances in performance.

 

[The slide title in burgundy reads "Year-to-date strategy returns." The slide features two tables summarizing annualized returns (%) for various investment strategies over 1, 3, 5, and 10 years (or since inception for some strategies). The tables are divided by strategy type: Canadian Focused Balanced Strategies, Global Balanced Strategies, Canadian Equity Strategy, North American Equity Strategy, U.S. Equity Strategy, and Global Equity Strategy. Each strategy lists its corresponding annualized returns for each time period.
Source: AMA Program, gross of fees. As of December 31, 2025. Returns are annualized for periods longer than one year. †Returns are in USD. ‡Inception dates: NA Dividend Income, June 2023; US Dividend Income, Feb 2017; R&R Global Equity, Sep 2021.]

 

So if you look at the stock and bond strategies, returns were strong across the board with the exception of the global equity strategy which was slightly down on the year. And this is really an example why we own multiple strategies for people and diversify our holdings. As the returns in global equity stocks were really offset with strong returns in North American markets. When we're holding a strategy, though, for our clients and ourselves, we need to be very diligent and understand the reasons why we're owning it, and especially when there's difficult years as investors to own that strategy.

 

[A minimalist slide with a white background. Centered in large burgundy text is "Strategy Focus: The Bad and the Good."]

 

Global equity has been a successful strategy for our clients over time, but didn't really. Participate in the narrow market and the

junk rally this year that Ian talked about. In addition, our Canadian strategy, CDI didn't participate in the gold rally to the same degree as the index. But if you consider its performance against Canadian markets without including gold, it generally did keep up. So let's take a look specifically at global equity and take a look at why we own it now and why we continue to own it, but also look at dividend growth and other strategies and which done well and see why things turned out differently there.

 

[The slide title in burgundy reads "Global Equity: Calendar returns vs average return 10 years." A bar chart shows annual calendar returns from 2016 to 2025, with most bars in light red except for 2022–2025, which are in a darker red. A horizontal line marks the 10-year average return at 10.48%. The horizontal axis displays years, and the vertical axis displays percentage returns.
Source: 2016 through 2021 is a proxy, the Guardian Fundamental Global Equity Fund. 2022 and forward: R&R Investment Partners, AMA Composite Performance Reporting (Gross of Fees). As of December 31, 2025. These calculations and projections are for demonstration purposes only. They are based on a number of assumptions and consequently actual results may differ, possibly to a material degree.]

 

So if we look at this chart here, well let me step back a bit. So global equity is a strategy that owns about 25 stocks out of a massive global market. It focuses on international businesses which are high quality because they have solid growth in earnings, they have manageable debt levels, they operate in non cyclical businesses. And they operate with competitive advantages as well. And so when we're looking to try and

answer our earlier question, we think it's helpful to look at the

yearly returns for this strategy, which on average has been strong and

importantly, when there's years where there's healthy and broad markets,

this strategy tends to do quite well. So if we look at the years sort of

2021 2020 2019. There's some strong returns in this strategy when there's healthy markets and then you can look at years like 2022 and even years like this past year is generally buying opportunities because you'll start to see some strong returns coming out of those.

 

[The slide title in burgundy reads "1999: Quality out of favour." A chart titled "Berkshire Hathaway vs. S&P 500" compares annual percent changes in total return for Berkshire Hathaway (dark blue bars) and the S&P 500 (light blue bars) from 1999 to 2020. The horizontal axis displays years, and the vertical axis displays percentage returns.
Source: www.cnbc.com/2021/01/08/how-warren-buffetts-uphill-battle-against-the-sp-500-is-changing.html]

 

If you think about another similar group of companies to the ones we own in global equity, you could look at Berkshire Hathaway and the company types of companies that it owns as well. So if you look back to the late 90s in 1999,it was actually one of the worst performing stocks and the market was up about. Up about 20% that year. So it was a difficult group of companies to own, but the next year it did super well. It handily outperformed the market and over time it continued to reward investors with substantial gains. So people were rewarded for having patience with Berkshire, but they're also rewarded for kind of seeing through. The noise and everything that was undervaluing Berkshire while also trendy pump trendy companies were being pumped up.

 

[The slide title in burgundy reads "Market concentration." A chart shows the "Weight of top 10 stocks in the S&P 500" as a percentage of market capitalization from 1996 to 2025, with a sharp increase reaching 39.3% on August 31, 2025. A table to the right compares the top 10 stocks by weight and beta on December 31, 2022, and August 31, 2025. The tickers and weights for each date are listed, with notable changes in the composition and betas.
Source: Mackenzie Investments, Bluewater Team, Mackenzie Bluewater Canadian Growth Mandate: 2025 Year-to-Date Review. As of November 6, 2025.]

 

A similarity between now and then is the concentration in the market, which if you look at now, basically 40% of the market is concentrated in the top ten names, which is actually more pronounced than it was back in the late 90s when Berkshire had that underperformance to the market. So there's a similar story happening now we think with global equity where in these concentrated markets it tends to lag and really we need to ask ourselves, are we OK with owning these high quality businesses despite not keeping up with these few winners? And when we're kind of answering that question, one way we like to look at it is look at the dividend yield of the broad market versus the dividend yield of these, this group of companies in global equity.

 

[The slide title in burgundy reads "The US stock market is expensive and narrow." A chart displays the S&P 500 Dividend Yield (I:SP500DYT) from 2000 to 2025, with a purple line showing fluctuations. Key values are labeled: Hi: 3.42%, 1.80% AVG, and a current value of 1.15%. The horizontal axis displays years, and the vertical axis displays dividend yield percentages.
Source: YCharts. As of December 31, 2025.]

 

So this chart here that we see shows kind of the average dividend yield of the S and P 500 over the last number of years. And it's averaged about 1.8%, which is roughly what the dividend yield is on global equity right now. But the dividend yield on the index today is down near about 1.15%. So this tells us that global equity continues to pay out strong dividends, those companies inside of that strategy or paying out strong dividends and they're actually likely becoming more attractive relative to the rest of the market. So we think it's reasonable to believe that over time markets are going to reward investors who hold these cash flow positive and growing companies which are also priced attractively. We also believe one of the original thesis for owning global equity, which is that for a well diversified portfolio you should look to own things

beyond North America and diversify yourself. So we're going to continue to own this strategy now and we've continued to add to it for clients and doing so for ourselves as well.

 

[The slide title in burgundy reads "Dividend Growth Strategy: Calendar returns vs average return 10 years." A bar chart shows annual calendar returns from 2016 to 2025 in red. A horizontal line marks the 10-year average return at 11.47%. The horizontal axis displays years, and the vertical axis displays percentage returns.
Source: R&R Investment Partners, AMA Composite Performance Reporting (Gross of Fees). As of December 31, 2025. These calculations and projections are for demonstration purposes only. They are based on a number of assumptions and consequently actual results may differ, possibly to a material degree.]

 

On the other side of the coin, we can look at dividend growth, which has been easy for people to own because it's averaged around 11% over time and it's had a lot of really good strong years, which makes it easy for people, right? And we, I've talked about it many times as a great group of companies for people to own and that's still true today. Just like with what we're seeing global equity right now, when we've seen dividend growth have years that were slightly down or going through difficulty, we look at this as buying opportunities. Like Ian said, when the when the  market's on sale, you want to go and actually act in those instances when you have long term money that you can put away for a number of years. So I think you should think about that kind of regardless of the strategy as

long as it's fitting these criteria, right?

 

[The slide title in burgundy at the top reads "$2 million invested: Dividend Growth Strategy since December 2015 vs 2.20% GIC." The main image is a line chart comparing the growth of $2 million invested in the Dividend Growth Strategy (red line) versus a 2.20% Guaranteed Investment Certificate (GIC, orange line) from December 2015 to December 2025. The Dividend Growth Strategy line shows significant upward growth, while the GIC line rises gradually. The vertical axis is labeled with dollar amounts from $1,500,000 to $6,000,000, and the horizontal axis is labeled with years.
Source: R&R Investment Partners, AMA Composite Performance Reporting (Gross of Fees). As of December 31, 2025. GIC rate is the 10 year average rate for Canada 5 Year Guaranteed Investment Certificates sourced from YCharts. These calculations and projections are for demonstration purposes only. They are based on a number of assumptions and consequently actual results may differ, possibly to a material degree.]

 

If we look at the next slide here, we can see that over time individuals who have stayed with dividend growth have had a fantastic journey, although there's lots of ups and downs along the way. Basically, if you look back to 2015 to now, $2 million turns into almost $6 million with those variances along the way. People are still owning it. We still own it. This strategy still owns high quality companies across North America in multiple sectors. We own some industrials, financials, energy and these continue to add value to our clients over time, so the big take away here is that when you own multiple strategies, you got to take the good with the bad. And with the global equities also come the dividend growths. They're both owning high quality stocks, but in different markets and experiencing different results and this is what we're going to continue to do on these strategies and buy them when it makes sense for people.

 

[A minimalist slide with a white background. The title in large burgundy text reads "Income Note Strategy." Below, in smaller burgundy text, it says "Generating income in flat, up, and moderately down markets."]

 

So stepping away from the all equity strategies, just want to quickly talk about the income note strategy. Lots of people own this strategy as our clients. As a bit of a reminder, it provides contingent income that is rules-based. So for instance, if we buy a note that tracks a certain

sector, you're going to get your coupons as long. As that sector doesn't fall 30% or more from when we buy the note. On average, these coupons are still strong.

 

[The slide title in burgundy reads "Income note strategy: Historic weighted coupon received." The main image is a line chart showing the historic weighted coupon received from January 2021 to December 2025. The line fluctuates and averages around 10.13%, which is marked with a horizontal line. The vertical axis shows percentages from 7% to 13%, and the horizontal axis shows dates from Jan 2021 to Oct 2025.
Source: R&R Investment Partners. Jan 2021 through June 2023: BMO Structured Notes monthly notes summary; July 2023 through December 2025: BMO Structured Notes monthly notes summary + CIBC Structured Notes monthly notes summary + Scotiabank Structured Notes monthly notes summary + National Bank Structured Notes monthly notes summary + Royal Bank Structured Notes monthly notes summary. These calculations and projections are for demonstration purposes only. They are based on a number of assumptions and consequently actual results may differ, possibly to a material degree.]

 

As Ian said, it's over 9% on average for new notes that we're buying for clients. It's been around 10% that we've received in terms of coupons for this strategy for people over time. And it does go up and down. Sometimes it's higher up near 12%. Other times it got down to lower around 8

or 9%. But this is a strategy where you can think of it is adding to your bucket one money with the coupons. And the capital itself invested in it is more bucket two or bucket three money. So this is a great effective strategy for our clients who are in need of income or want something different than stocks and bonds. If anyone has any questions about this strategy, please feel free to reach out and we can talk about it more, but I'm going to pass things along here to Randy and he can talk about some of those managing real life or sorry topics for the next year.

 

[A minimalist slide with a white background. The title in large burgundy text reads "Managing Real Life." Below, two bullet points in burgundy text: "Currency hedging" and "RRIF early?"]

 

00:19:48.289

[Yozipovic, Randy] Thanks, Harry. We wanted to talk about two things that

affect real life with people, which is currency hedging or you know, the value, the difference in value between the Canadian and the US dollar and also taking money out of your RRSPs or RRIFs. As they're called. But before we go there, I wanted to talk a little bit about a thing that I also think has a big effect on our real life, which is managing our news content in a lot of calls with clients. They often ask about things that are going on in the world today and there's a lot of things going on or

they'll say there's a lot of things going on today. The fact is there's always a lot of things going on. But we think that, you know, we pay more attention to them when we're when we have more at stake. So you know, when we're 18 or 19 we don't really have a lot of assets. The same things were going on in the world, but we were more concerned about a paycheque than what to do with the millions of dollars that we'd saved. And so I think one of the principles in managing our news content and how it affects our emotions because money decisions are emotional. Just think of it like driving. When driving, it's hard to stay focused on where you're

going when you're staring at the windshield and looking at the bugs on the windshield. And we would equate the bugs on the windshield to media noise. We want to focus on the longer term things that are really mattering and how that happens so a couple of points. The first has to do with currency and how you spend your money and the effects on the relationship between the Canadian and the US dollar.

 

[The slide title in burgundy reads "How we invest your money: By time horizon and where you spend your dollars." The main image is a chart with three metal buckets labeled "Stable," "Income," and "Long-term growth" placed along a dotted upward-sloping line. The vertical axis is labeled "Possible fluctuations in value" with levels "Low," "Medium," and "High." The horizontal axis is labeled "In how many years do you need the money?" with numbers 1, 3, and 5+.
Source: R&R Investment Partners]

 

Second deals with the forced reality of having to pull money out of your RRSP. So when we talk about the buckets a lot, but let's put a little twist on this. Let's talk about not just the time horizon where you'll spend your dollars, but where you will spend them. Meaning are you spending them in Canada or in the US? This has a big decision in whether your dollar should be held in Canadian or US currency. So let's pretend I live in Calgary for six months a year and I'm living in Arizona, California or Florida six months a year. I'm going to have needs to spend both currencies, and so it's effective to hold assets in both currencies. So that's the if I only spend my life in Canada, I'm less concerned with that. But then I'm I have a different thing around hedging. So if we move to the next slide we can talk about that.

[The slide is split into two sections. The left side has a burgundy background with the title "Currency Hedging" in large white text, and two bullet points in white text: "Dividend Growth (Hedged)" and "Tax Efficient Global Equity (Hedged)." The right side has a white background with the heading "What does currency hedging do?" in burgundy and three bullet points in burgundy text:

• Protects your portfolio from a rising Canadian dollar
• Gives you the performance of your US holdings without the headwind of a rising Canadian dollar
• A rising Canadian dollar of 10% and US stock return of 10% equals a return of zero to a Canadian]

 

So we have two strategies that hedge out the effects of currency fluctuations. The first one Harry already went through called dividend growth, but we have a hedged version of it where the US holdings are insulated from currency fluctuations. So what does currency hedging do?

It protects your portfolio from a rising Canadian dollar. It gives you the performance of your US holdings without the headwind of a rising Canadian dollar. So what that means simply is if you have US holdings and they rise 10% and the Canadian dollar also rises 10% when you convert your holdings back and you look at them online in Canadian dollars,

you'll see that your return was zero. Your 10% return of the stocks gets offset by the fact that the Canadian dollar rose. Hedging insulates you from most of that, not all of it, because hedging is not free. There's embedded cost to it. We would estimate it. Even though they say it's around point 4%, we would estimate it at 1 to 1.25%. Hedging's very effective if you believe the dollars, our dollar's going to rise or the US dollar's going to fall or some combination of the two. Where it becomes a cost is if our dollar stays sideways for five or ten years,

it becomes a bit of a drag on performance. We also have another strategy called tax efficient global equity which is also hedged, hedging out Canadian US currency fluctuations and that uses a series of exchange traded funds that are more tax efficient that approximate some of the things we do in some of our strategies with Canadian, sorry, with

different US and foreign holdings. And so if you want to talk further about this, it's a personal discussion that needs to be tied back to what your spending needs are and what your view is on how these things are going to happen with currency. We're pleased to have that, pleased to have that discussion with you. Let's talk about RRIFing.

 

[The slide is split into two sections. The left side has a burgundy background with the title "Should you RRIF early?" in large white text, followed by three main bullet points in white text:

• What is the goal?

o Pay less tax on death?

o Leave a larger after-tax estate?

• Do you have excess capital?
  The right side has a white background with two examples in burgundy text:
  Example 1: If married, taxes are paid upon the passing of the last surviving spouse
• Hypothetical $1,000,000 RRIF
• Tax payable?
  Example 2: What is left for your heirs?
• Leave heirs $1.0mill after estate pays $900,000 in taxes vs...
• Leave heirs $1.5mill after the estate pays $1.3mill in taxes]

 

 

When you turn 71, you have to convert your RRSPs to a RRIF. It's just an account change. Nothing else happens. When you turn 72 or in the calendar year in which you turn 72, you have to start taking money out of your RRIFs government mandates it. So often people ask, should I be taking money out of my RRIF early before I'm 71, maybe when I'm 60 65 or should I be doing the larger amounts to get more money out? First of all, this is a this again is a is a personal discussion that has to  do with not only how much money you have, but what your spend rate is and how your money is broken up between a corporate account, a personal account,

and an RRSP or RRIF accounts. So there's no blanket answer, but we want to give some general principles. Often, um, what's forgotten is in these discussion is what's the actual goal that we're trying to achieve here as a couple. So if is your goal to pay less tax on death, or is your goal to leave a larger after tax estate? They sound like the same thing,

but let's talk about one thing first. If I pass away and have an RRSP,

it does transfer to my wife tax free. Tax is only payable on 2nd death. So first death tax free to the spouse, second death taxable. So do I want to pay less tax when I pass away on 2nd death or do I want to leave a larger after tax estate? It is possible to pay more tax on death and leave a larger after tax estate. When we've had these discussions with

most clients, they say, well, of course I want to leave the most money

possible after tax to my kids, charities or whatever, but often that's forgotten in the quest for tax minimization. So example one,

let's look at it this way. Let's say you're married. You've got you got a hypothetical RRIF of $1 million. What's the tax payable? So a couple of things. I've got two options here. Would I rather leave my heirs $1 million after my estate pays $900 thousand in taxes. So I had 1.9, the heirs get 1 million. Or would I rather leave my heirs 1.5 million after the estate pays a higher 1.3 million in taxes? Now most people I talk to or Ian or Harry talks to say I'd rather leave my kids the million and a half or the charity or whatever. But if we're ultra focused on taxes and

we only talk about taxes, we'll say, well, of course I want to pay 900 grand in taxes, not 1.3. So we think in most of these discussions with clients, they want to leave the most money possible after tax to their heirs. And the way to do that, the way to do that is to only minimize RRIF payments, not to take out more and not to take it out early if you have excess capital. So this should be part of a broader discussion. If you're wondering, do I fit into this discussion, should I? You can, you can talk to us. We'll go through the details. We've gone through it with a handful of people. And gone through the planning exercise. Generally speaking, it can just be a conversation. It doesn't need to be a complex financial plan unless your situation is very complex and we're happy to do that. Looking forward, let's go to the next slide.

 

[A minimalist slide with a white background. The title in large burgundy text reads "Looking Forward."]

 

Let's talk about innovation. This is another thing that's often missed in the media noise of looking at the bugs on the windshield is the power of innovation.

 

[The slide is split into two sections. The left side has a burgundy background with the title "Innovation" in large white text. The right side has a white background with the following text in large burgundy font: "The October 6, 1877 issue of Scientific American magazine described the phone as nothing more than a 'beautiful scientific toy.'"]

 

So, you know, history is driven by innovation, and the innovations today are artificial intelligence, augmented human intelligence. And what's the lesson here today? There's a saying that we often underestimate the long term change brought on by innovation, and we overestimate it in the short term. I think we were supposed to have flying cars already based upon TV shows in the 1970s. In October 6th, 1877, Scientific American magazine said the telephone is nothing more than a beautiful scientific toy. With the benefit of hindsight and not to be critical, we know it was much much more than that. It changed communication. It changed socializing. It changed manufacturing. It changed travel. It changed supply chain management for businesses. It changed the world in ways people could not have imagined in 1877. And if we go to the next slide on artificial intelligence, we think it's the same.

 

[The slide features a dark blue background with a digital wireframe illustration of a human brain made up of interconnected glowing blue lines and nodes. Below the illustration, in large white text, it reads "Artificial Intelligence: AI."]

 

We don't think we actually know how it's going to change the world completely, other than to know it's going to be much bigger, just like the telephone than we could imagine. ChatGPT as an example, there's 700 million monthly active users, 18 billion messages per week. People are using this. People often ask how do we make money from this? Is it a circular bubble? How will it affect my kids job wise? What about universal basic income? They have all kinds of questions. Here's what we think. There are companies on the next slide that directly benefit from artificial intelligence like Broadcom, Microsoft, JP Morgan, BlackRock owned in the portfolios that we take care of for you.

 

[The slide is divided into two sections. The left side has a burgundy background with the title "Companies that implement AI" in large white text. The right side has a white background and lists four companies in large burgundy text:

• Broadcom Inc.
• Microsoft Corporation
• JPMorgan Chase & Co.
• BlackRock, Inc.
  A disclaimer in small black text at the bottom right reads: "This report is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited."]

 

But there's also companies that you don't think of that are using this aggressively that are your bread and butter companies. Grocery stores, implementing it in supply chain to fully automate things, cut costs, reduce employment levels, which increases profit levels. That's the flip side of the automation too. There will be job loss. There will be dislocation. We want to be on the right side of that as investors. We also want to be on the right side of it I think as parents, when we're talking to our children about career choices for things that they do. And so we think that the effects of artificial intelligence are going to be threefold, to be simple, increasing profits and economic growth and also the elimination of redundant operations inside of companies which lead to and are the byproduct of innovation that drive profits and share prices over time. And so we think that these things are really important to think about when you're filtering through what's going on in the world and the noise today that there are long term implications here that will be positive for long term economic growth. When we tie to some conclusions, let's wrap it up with a few things that we think are simple.

 

[A minimalist slide with a white background. The title "Conclusions" appears in large burgundy text at the left.]

 

Keep one or two years of fixed spending, liquid or near liquid in your life.

 

[The slide title in burgundy reads "Conclusions: Positioning yourself for 2026 to 2030." Five bullet points in burgundy text provide guidance:

• Do: Keep one to two years of fixed spending liquid, or near liquid
• Do: Keep your long-term money invested for growth, and stage new long-term money into equities
• Do: Invest your long-term money like an institution and buy the dip
• Don’t: Move your long-term money (i.e. not required for 10 to 20 years) that is invested for your future or children into the short-term bucket
• Be: An optimist. Pessimists sound smarter but optimists are right in the end]

 

Control the controllables in life. There's so many variables. Variables in life. Those of us who have complex larger families, you understand there's always surprises, so keep one or two years of fixed spending liquid or near liquid. Keep your long term money though invested for growth and stage new long term money into equities and take advantage of choppiness like Ian talked about. We should think like institutions. We should buy the dip. We shouldn't be driven by our emotions. We should not move our long term money that is invested for our future or our kids future into the short term bucket out of short term fear. We also think it's realist, realistic to be an optimist. Pessimists sound way smarter, but optimists are right in the end. And when we think about recessions, which is a question we get often on the next slide.

 

[A slide with a solid burgundy background. Large white quotation marks are at the top left, followed by the main text in large white font: "Everyone knows when the last recession happened, absolutely no one knows when the next one is coming."]

 

Everybody knows when the last recession happened, what absolutely nobody knows, and when we say nobody, we mean nobody. They don't know when the next one's coming, how deep it'll be, how long it'll be, or if it's around the corner. They'll tell you when it happened after the fact, but we think these things are best dealt with by managing your cash bucket, your debt levels, and your spending, which ties in the next slide on managing your real life.

 

[The slide title in burgundy reads "Conclusions: Managing real life." Five bullet points in burgundy text provide practical advice:

• Update your will and review who you want as an executor
• Pass on your good behaviour to your children to help them be good stewards
• Keep your debts manageable
• Keep your spending sustainable and be on guard for lifestyle “creep”
• Giving: Generosity gives you joy and helps you pay less tax. Be generous if you are able and enjoy your relationships]

 

Update your will, look at it if your life's changed. This is one of those things people hate doing, but it's important to do. Know who your executor is and are they willing and are they able, especially look down the road 10 or 20 years. We think it's also really critical in our discussions with the families we serve to pass on your good behavior. To your children or those close to you in your life that you care about. Nieces, nephews. You might take your good behavior for granted, but it's a learned skill that you've developed to live below your means, to save, to think about tomorrow. Help those you love to be good stewards by teaching them what you know. Keep your debts manageable. Keep your spending sustainable. Sustainable spending is not about a dollar amount. It's about an amount that your portfolio can sustainably provide and not killing the goose. We also think, as we learned from watching clients, generosity gives people joy. It also helps you pay less tax, which also gives people joy. And be generous if you're able and enjoy, enjoy your relationships. We're going to open things up to questions and Ian's going to moderate this section.

 

[A minimalist slide with a white background. The title "Questions?" appears in large burgundy text at the left.]

 

00:33:28.000

[Munro, Ian] So I'll give it a few minutes here. I saw that we had a couple of questions come in through the presentation. We'll see if additionals come in, but let's start with the first one. Which was, are you expecting a market correction? Things seem expensive. Randy, do you want to tackle that one?

 

00:33:56.574

[Yozipovic, Randy] Sure. So, so I think it was in Ian's section, there was a slide on the yield of the S and P 500. The S and P 500 is expensive, full stop. It's more expensive than it's been since the year 2000 and it's typically given driven by the top seven or eight companies that we all know. But when you look at when you strip that out and look at a strategy like US dividend income or the US side of dividend growth, or even you look at global equity, which Harrison went through, those kinds of stocks are not expensive. In global equity's case, they're trading at discounts to where they've been and in US dividend income's case. They're trading at the same valuation levels they've always been because a strategy like that buys stocks when they're trading with a higher yield and sells them when they have a lower yield. So expensive in certain areas, not in others. Are we expecting a market correction? Yes, and always. As Ian mentioned, 2020, so last year was 2025, we had the volatility in April. In 2024, we did not. We talked about it at the end of 24. That wasn't normal that we will get some at some point. We haven't had any since April of last year. So at some point we will get some kind of a sell off. And then everybody will know after the fact why it happened. But we think that the kinds of things that we own are resilient and that they that they come back to full value more quickly than the other things that are trading at high valuations that typically

have a tendency to sell off much deeper.

 

00:35:28.000

[Munro, Ian] I'm just going to add one thing to that. When it comes to volatility, normal market movement, normal fluctuation that that happens. I think when it comes to those prognosticating and predicting large events are usually wrong and the large events that are the things that move the market in a in a material way are the things that nobody's ever thinking. It's usually the thing that comes out of left field. So just keep that in mind when we are listening to the talking heads on the television and you know, reading in your whatever media you consume, just keep that in mind and always ask that question. Harrison, I'm going to put you on the spot with this one here. We got a question on what's going on with gold and do we own any in the portfolios? You talked about some of the strategies. Do you want to explain our gold exposure and what's going on there?

 

00:36:31.302

[Love, Harrison] Absolutely. So with gold, obviously it's done super well over the last number of years. I would say predominantly the last couple of years it's seen a huge run up and this in many ways is due to the fact that there's been a whole bunch of money pumped into the system over kind of the last half a decade really. And it's a bit of a debasement of currency that people are betting on why they're buying gold or they're buying it because they view it as a sort of hedge against things happening in the world. So it's done quite well over the last little while. And it's not something that we own in our strategies as bullion. So we don't own physical gold or gold ETFs inside of our strategies. The way that we have had an exposure to gold is through gold producing companies. And in fact, a lot of the reason why we buy these companies is because they meet the same types of criteria as other companies that we're buying in our strategies like in Canadian dividend income and they're good quality companies. So they meet the criteria and they go in and that's how we've been getting kind of exposure to gold and these are for as a couple examples, you can look at Wheaton Precious Metals, you could look at, you could look at Franco Nevada Gold and these are a couple of companies that we've owned and gotten exposure to gold in that way.

 

00:37:55.780

[Munro, Ian] Um, looks like we got one more question here and this is for our views on the upcoming this is well crafted CUSMA negotiations rather than the United States, Canada, Mexico Agreement, but the CUSMA negotiations and the possible ramifications. Does anyone want to take a stab on that one?

 

00:38:22.484

[Yozipovic, Randy] Yeah, yeah, I'll, I'll add something there. We were just talking about this a couple of days ago, I think if you look at the playbook of how the US president operates when he negotiates, he makes a lot of noise and we have the first go round that happened in NAFTA in the first term, a whole bunch of noise. Some adjustments to the agreement. A name change to the agreement. A claiming of absolute victory. And that it was the best deal ever. And then wanting to change the deal again, so the short answer, I think, is we don't know for sure what happens there. There's lots of prognosticators, but I think the playbook is pretty accurate and if you stand back, that's been how things have been getting negotiated. In the second term of this presidency too. So I think there's a lot of interrelated supply chains between Canada and the US and that things get sorted out over time. But I think this is another reason that

we could expect volatility from these types of discussions and it's also what kind of drove the volatility in April of last year. And so I would think our conclusion would be we don't think it changes investment policy for people. We think that if you're an accumulator, you should buy those dips if they come. And if you're a retiree, not because of market conditions, but because of your personal needs for spending, it's always important to keep your cash bucket primed for the needs that you have in your life.

 

00:40:11.663

[Munro, Ian] Mm-hmm. I think that's well said and I think it's important to remember too from an investment standpoint, a lot of people were wondering why is the Canadian market doing so well last year when there was a lot of tariff concerns. And we have to remember a lot of the companies that were most impacted by some of these tariff renegotiations or even the potential of renegotiation of NAFTA or the Canada, US,

Mexico agreement, whatever you want to call it, there isn't a General Motors Canada, there isn't a Ford Canada. So a lot of the automotive industry being really impacted, there's just a General Motors that trades on the US exchange, there's a Ford that trades on the US exchange. Yes, it impacts jobs and employment in Canada, but from a market perspective, there's not a direct impact to Canada.

 

00:41:02.663

[Yozipovic, Randy] There's one more question there, Ian.

 

00:41:05.343

[Munro, Ian] Is there one more question?

 

00:41:07.263

[Yozipovic, Randy] I'll I'll take, I'll take a first…

 

00:41:07.263

[Munro, Ian] I don't. I don't see it. So yeah.

 

00:41:10.693

[Yozipovic, Randy] Yeah. So the question is, how do you stress test portfolios for long periods of underperformance or high inflation? What's one assumption in today's market you're least comfortable with? That's a good question. You know, the 1970s was a high inflation period for a good decade. It's a good time to stress test, which we have. That period was combined with a market in the early 70s that was similar-ish to today had a basket of stocks called the Nifty 50 that people believed you could buy and own forever. Coke was one of those companies, and it still was a great company through the 1970s, but it's share price didn't do that great because the valuation started so high. It still kept making money and doing all these wonderful things. And so that that's a great period to stress test. What actually did better through those time periods was just trying to buy high quality companies trading at reasonable valuations. Which is, um, a strategy that does not do well when markets get narrow and frothy and hot, but does well over the longer term. So I think that that continues to be the answer to that. Inflation is a difficult thing when it takes root in a in an economy and I think in the end if a family can preserve their purchasing power, it's a victory because a lot of purchasing power gets destroyed by inflation. Primarily to bond holders and cash holders, sorry, people who hold cash. And so that that's the other thing we don't want to see is that people are holding their long-term money in bonds and cash and GICS because it just

gets eroded by inflation. The one assumption that makes us least

comfortable. Um.

 

00:43:06.903

[Munro, Ian] I've got one for this if you want me to jump in.

 

00:43:08.623

[Yozipovic, Randy] Yeah, go ahead. Go ahead.

 

00:43:10.122

[Munro, Ian] I think it lends on a couple of things, but one assumption being that active management and stock selection is no longer important in this market. Why don't I just own the S and P 500 or the NASDAQ 100, what have you. That makes me uncomfortable for the fact that the market is so concentrated to a handful of names now that you have a lot of misvalued or undervalued companies that are not owned in these indexes to the degree that they should be. So the idea that I'm just gonna own the

S and P, the NASDAQ, because it's done well for me the last number of years and it should do well for me the next number of years, well, that may not be the case. So Harrison did a great job of talking about some of the valuations in a strategy like global equity. That are being ultimately mispriced at this point, but there's a lack of ownership in the in these broad indexes. So to me the passive versus active

conversation is something that makes me not very comfortable with.

 

00:44:20.143

[Yozipovic, Randy] I don't think there's any other questions.

 

00:44:23.503

[Munro, Ian] I don't see any. Mine was not updating, but I'll go in one more time and take a look, but I think that's it. I'll remind that if there are any other questions that didn't want to ask during

the presentation. The three of us are available anytime. You can set up a call with the team, call us directly, send us an e-mail, happy to chat and we do appreciate everybody tuning in today. This Webinar will be posted on our website for review again if you didn't feel like you got caught everything in the live sessions. So happy to review it there and thank you again for tuning in and hope everybody has a wonderful rest of the day.

 

00:45:05.263

[Yozipovic, Randy] Thanks everybody.

 

00:45:07.783

[Love, Harrison] Thank you.

 

00:45:11.000

 

[Disclaimers
Performance results set out in this document are based on a composite of CIBC Wood Gundy Advisor Managed Accounts (“AMA”) with more than $75,000 invested in a specified investment strategy managed by the AMA Portfolio Manager. Composite inception date is based after the second month the first AMA account opened in the strategy. The subsequent AMA accounts in the strategy are included after second month following their inception. Also included in the composite are closed AMA accounts that held the strategy, up to the last full month the Strategy was held.
Composite/Strategy Name Inception Date Composite/Strategy Name Inception Date
Moderate Growth Mar 2007 Dynamic Growth Aug 2009
Dividend Growth Mar 2007 Income Jan 2010
Income & Growth Apr 2007 U.S. Dividend Income Feb 2017
Canadian Dividend Income Mar 2009 R&R Global Equity Sep 2021
N. American Dividend Income Jun 2023
Performance returns are based on composite of CIBC Wood Gundy Advisor Managed Accounts ("AMA") invested in an investment strategy managed by the AMA Portfolio Manager.
The performance returns are geometrically linked and calculated by weighting each account's monthly performance against its market value at the beginning of each month as represented by the market value at the opening of the first business day of each month. Performance returns are gross of investment management fees, and other expenses, if any.
Individual AMA performance results may differ from those in this document due to the above and other factors such as an account’s size, the length of time an AMA strategy has been held, cash flows in and out of the individual account, trade execution timing, market conditions and movements, trading prices, foreign exchange rates, specific client constraints, and constraints against purchasing securities of related and connected issuers to CIBC Wood Gundy.
Past performance may not be repeated and is not indicative of future results. This document is prepared for informational purposes only and is subject to change without notice.
This presentation is not to be construed as an offer to sell, or solicitation for, or an offer to buy any AMA strategy or other securities. Consideration of individual circumstances and current events is critical to sound investment planning. All investments carry a certain degree of risk. It is important to review objectives, risk tolerance, liquidity needs, tax consequences and any other considerations before choosing an AMA strategy. Individual circumstances and current events are critical to sound planning; anyone wishing to act on the information presented should consult with his or her financial, legal or tax advisor.
Please note that rate of returns, projections, and data within the examples provided, are for demonstration purposes only. They are based on a number of assumptions and consequently actual results may differ, possibly to a material degree.
Any portfolio evaluation or consolidated statement report provided to you is not an official record. The information contained in this report is to assist you in managing your investment portfolio recordkeeping and cannot be guaranteed as accurate for income tax reporting or other purposes. In the event of a discrepancy between this report and your account statement or tax slips, the account statement or tax slip should be considered the official record of your account(s). Please consult your tax advisor for further information. Some positions in the report may be held at other institutions not covered by the Canadian Investor Protection Fund (CIPF). Refer to your official statements to determine which positions are eligible for CIPF protection or held in segregation. Calculations/projections are based on a number of assumptions; actual results may differ. Yields/rates are as of the date stated on the report unless otherwise noted. Benchmark totals on performance reports do not include dividend values unless the benchmark is a Total Return Index, denoted with a reference to 'TR' or 'Total Return'.]

 

00:45:11.000

 

[Disclaimers
CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets 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.
This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change. CIBC and CIBC World Markets Inc., their affiliates, directors, officers and employees may buy, sell, or hold a position in securities of a company mentioned herein, its affiliates or subsidiaries, and may also perform financial advisory services, investment banking or other services for, or have lending or other credit relationships with the same. CIBC World Markets Inc. and its representatives will receive sales commissions and/or a spread between bid and ask prices if you purchase, sell or hold the securities referred to above. © CIBC World Markets Inc. 2026.
This presentation is for informational purposes only and is not being provided in the context of an offering of any security, sector, strategy, or financial instrument, and is not a recommendation or solicitation to buy, hold or sell any security. Individual circumstances and current events are critical to sound planning; anyone wishing to act on the information presented should consult with his or her financial, legal or tax advisor.
For GIC terms of one year or less, simple interest is paid at maturity. For GIC terms of greater than one-year, simple interest is paid annually or compound interest is calculated annually and paid at maturity. For more information about this product, please contact your Investment Advisor.
Insurance services are available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are available through CIBC Wood Gundy Financial Services (Quebec) Inc.
Unless otherwise stated, yields/rates are as of December 31, 2025, and are subject to availability and change without notification. Minimum investment amounts may apply.
Clients are advised to seek advice regarding their particular circumstances from their personal tax and legal advisors.
If you are currently a CIBC Wood Gundy client, please contact your Investment Advisor.
Randy Yozipovic, Ian Munro, and Harrison Love are Investment Advisors with CIBC Wood Gundy.]

 

00:45:21.000

 

[END]

2025 Mid-Year Update Webinar-Meeting Recording

[Cover slide: The image is a title slide from a presentation by CIBC Private Wealth. It features the CIBC logo in red at the top left corner. Below the logo, the text "R&R INVESTMENT PARTNERS" is written in red. The central title reads:  

- "Investing in Turbulent Times:" in bold red text.  

- "This Time is Not Different" with "Not" italicized, bold, and red for emphasis.  

At the bottom of the slide, the date "June 24, 2025" is written in fine red print, and the word "CONFIDENTIAL" appears in small gray text at the bottom center. The background is plain white, and the top right corner contains the text "CIBC PRIVATE WEALTH" in red. The slide suggests a financial presentation focusing on investment strategies during economic volatility.]

 

Munro, Ian   1:51
Good afternoon and welcome.
Thanks for tuning in.
My name is Ian Munro.
I'm here with my business partners Randy Yozipovic and Harrison Love and we welcome you to our 2025 mid year webinar titled Investing in Turbulent Times.
This time is not different.
 

[Slide 1: The slide has a maroon background with white text. The main statement reads:  

- "Our mission is to simplify your financial life so you can live your life doing what you truly love" in bold, large font.  

Below it, italicized subtext reads:  

- "Because everyone deserves straightforward advice, where you are treated like family."  

The CIBC logo is displayed in the bottom left corner, and the word "CONFIDENTIAL" is centered at the bottom in small white text. The slide number "1" is in the bottom right corner. The slide communicates CIBC's mission statement, emphasizing simplicity, care, and client-focused values.]

 

Before we get into the formal part of the presentation, as always, we want to take a moment just to chat about our group's mission statement, our mission to our clients is to simplify your financial lives so you can live your life doing what you truly love. Because everyone deserves straightforward advice where they're treated like family.
We talked about this mission statement pretty much on all of our presentations because it is important to us and it is what keeps us coming to the office on a daily basis. We drafted this ourselves.
And it is everything that we try to accomplish on a day in, day out basis and we hear great stories from all of you about how we've helped and made an impact on your worlds. And we thank you for that and that's the encouragement we need to continue to take care of your needs.

[Slide 2: The slide introduces team members from CIBC's R&R Investment Partners. The title at the top reads "How we serve you" in bold red text. Two sections are highlighted:  

1. Wealth Advisors (in a gray bar):  

   - Randy B. Yozipovic, Ian S. Munro, and Harrison J Love are listed with their titles, contact details, and professional photos.  

2. Who do you call if you need... (in another gray bar):  

   - Tanya Kittananthawongs, Pedro A. Montoya, and Colton Yozipovic are listed similarly.  

Each individual is professionally dressed, and the CIBC logo is in the bottom left corner. The word "CONFIDENTIAL" is at the bottom center, and the slide number "2" is in the bottom right corner.]

 

We do function as a collective. Everything we do and how we serve all of our clients is done in a group effort.
You're gonna hear from the three advisors on this presentation today, but know that everything that takes place is done as a group of nine.
So whether you're talking to myself, Harrison or Randy or Tanya or Pedro or Colton 

 

[Slide 3:The slide continues introducing team members under the header "How we serve you" in red text. The subheader "Who do you call if you need..." is in a gray box. Three individuals are listed with their names, titles, contact information, and professional photos:  

- Vanessa Espiritu (Client Associate), Eliora Johnson (Administrative Assistant), and Kate Couture (Administrative Assistant).  

The CIBC logo is in the bottom left corner, and "CONFIDENTIAL" is centered at the bottom. The slide number "3" is in the bottom right corner.]

 

or Vanessa or Eliora or Kate, everything is done in a group effort to serve your needs.

[Slide 4: The slide is divided into two sections:

- Left Panel (Dark Gray Background): The word "AGENDA" is in bold white text near the top. The CIBC logo and "CONFIDENTIAL" are at the bottom left.  

- Right Panel (White Background): Contains bullet points in dark red and dark red text under the first bullet point "What has happened in 2025", topics include Canadian election, Trump/ tariffs, monetary policy (Canada cuts vs. US holds), CAD/USD FX, and changes to taxation on US dividends for Canadians. Additional sections include "R&R Strategies", "Managing your real life", and "Questions" (all in red). The slide number "4" is in the bottom right corner.]

 

As far as the agenda, today, we're gonna do a a somewhat brief recap to a very busy start of 2025. Harrison's then gonna jump on and talk about our R&R investment partners strategies.
And then Randy will close things up with managing your real life and then we'll open it up to questions.
Know that in this setting and in this format there is a Q&A button on the top of your screen, you can ask us questions anonymously.
You can ask us questions with your name attached and we will do our best at the end of the presentation to go through those questions.
 

[Slide 5: The slide is split into two sections:  

- Left Panel (Maroon Background): The title "What has happened so far in 2025" is in large white text. The CIBC logo and "CONFIDENTIAL" are at the bottom left.  

- Right Panel (White Background): Contains maroon bullet points discussing events like a new Canadian government, US tariff policies, and monetary policy changes. Sub-bullets detail impacts like market volatility and bond yield changes. The slide number "5" is in the bottom right corner.]

 

So what's happened so far in this busy 2025?
First thing we'll talk about is we did have our election in Canada and we do have the results in a Liberal minority and I think it's important that we remember whether you voted red or blue or orange or green.
We must follow the policies and not the personalities.
A lot of the headlines so far this year from a market standpoint have been dominated by tariff talks and this has created a lot of uncertainty simply because the US president continues to change his mind daily.
And as a result, it's created a lot of market volatility. The US Liberation Day has definitely created a US first policy, which again has created market volatility.
We talked about this last year in our year end review webinar and presentation. That 2024 was historically low volatility and that we should always be expecting market to to move up and down.
I guess the law of average has created that this year. So we have seen that increase in market volatility, but remember volatility when markets move up and markets move down, let's use them to our advantage. Market volatility on the downside does allow us to purchase assets at a discount. So if you were planning on saving, continuing to invest, use that volatility as an advantage.
We've seen rising bond yields in the US.
Again, because of this first, America first approach we've seen the bond yields go up U.S. dollar weaken.
This will make things challenging for the US for refinancing deficits, we've continued to see a weakening in the US dollar, a Canadian dollar strengthening, good for travelling, good for purchasing can create other challenges when it comes to Canadians owning US investments as everything that we do is priced back to the Canadian dollar.
And then when we look at monetary policy and interest rates, we think Canada continue to cut through the Bank of Canada and the US Federal Reserve continuing to hold rates.

 

[Slide 6: The slide is divided into two sections:  

- Left Panel (Maroon Background): The title "What has happened so far in 2025" is in bold white text. The CIBC logo and "CONFIDENTIAL" are at the bottom left.  

- Right Panel (White Background): Contains maroon bullet points discussing topics like the "One Big Beautiful Bill Act," government overspending, cash as an asset, and a humorous note about perceived economic stasis from February to May 2025. The slide number "6" is in the bottom right corner.]

 

We have had a lot of chatter about the one big, beautiful bill act that's being passed through the Senate right now in the US in one particular section of Section 899, which has a significant impact on Canadian investors as it could impose tax hikes from 15 to 50% on US dividends. This is impacted to Canadians that own U.S. stocks inside of a non registered account, a corporate account, tax free savings account, it will be exempt inside your RSP.
But this is something that we continue to monitor and continue to look at. When we look at government spending continues to drive higher deficits and money printing continues and it continues to decrease our purchasing power.
You know, when we look at the deficits, this new liberal government has proposed to run a 62 1/2 billion dollar deficit, this big, beautiful Bill act is estimated to increase the federal deficit in the United States by almost $2 trillion over the next 10 years. So remember, cash is a great asset.
It's a stable asset class and keeps you sane during market volatilities and downturns, and it's great for near term purchases, but it is the worst performing asset class and we remember that governments will continue to inflate your purchasing power away.
And a final commentary just on market volatility.
I think it's important that we have perspective.
If we all turned our phones off, turned the internet off, TV radio on February 15th and then returned back in May 15th and turned it all back on it would appear as nothing happened. You know, just remember that market volatility, market noise, it's loud.
It's always loud when things are going down and things are getting challenged.
So just remember, take things with perspective and remember that not all markets are created equal just because the S&P 500 or whatever the media is flogging at the time and talking about, you know down turn markets doesn't mean that that's impacting your portfolio in the same way.
 

[Slide 7: The slide features a chart titled "A decade of 10-year bond yields" in dark red text. The chart shows the Canada 10-Year Benchmark Bond Yield from 2015 to 2025, with a purple line graph. Key points include:  

- Hi: 4.26%, AVG: 2.07%, and Current: 3.27%.  

The CIBC logo is in the bottom left corner, and "CONFIDENTIAL" is centered at the bottom. The slide number "7" is in the bottom right corner.]

 

Another key theme for the year is we're seeing in Canada the 10 year bond and yields continue to come down from their highs. The 10 year bond yields is important than when you see the rates coming down bond market is signaling a slowing economy.
The ten year is also important.
It's not a direct way that the bank set fixed rate mortgage mortgages.
But typically when we do see yields drop you will see fixed rate mortgages come down, which is obviously good for new new borrowers and those refinancing mortgages from previous highs.
There's a lot of chatter and a few years ago when rates were going up about what's going to happen with all the outstanding mortgage debt in Canada and how is it going to be refinanced and and paid back with higher rates.
Well, we have seen yields come down quite substantially.
 

[Slide 8: The slide features a chart titled "A decade of CAD/USD FX rates" in maroon text. The chart shows the CAD/USD exchange rate from 2015 to mid-2025, with a purple line graph. Key points include:  

- Hi: 0.832, AVG: 0.758, and Current: 0.732.  

The CIBC logo is in the bottom left corner, and "CONFIDENTIAL" is centered at the bottom. The slide number "8" is in the bottom right corner.]

 

When we look at the Canadian dollar versus the US, the Canadian dollar has strengthened significantly since quote unquote Liberation Day in April.
But again, this does create a challenge for Canadian investors if we see the US stocks in your portfolio go up by 5%, but our dollar also strengthens by 5% to the US it means there's going to be a net zero made on your portfolio, so it's important that you consider hedging strategies.
We have these in place for many of our strategies that own US assets or assets outside of Canada and happy to chat further about that. 

 

[Slide 9: The slide is titled "Shift your focus: short-term to long-term" and features three graphs showing the performance of the iShares S&P/TSX 60 Index ETF (XIU.TO) over different time periods. Each graph highlights a short-term dip with a red oval, showing its diminishing significance over longer time horizons. The CIBC logo is in the bottom left corner, and "CONFIDENTIAL" is centered at the bottom. The slide number "9" is in the bottom right corner.]

 

When we look at market volatility, these are three charts of the year to date, year over year, and a five year chart. And I think it's just important that we shift our focus.
We need the ability to zoom out a little bit when we are going through challenging times in markets. And remember that every crisis has resolved itself to new highs.

 

[Slide 10: The slide is titled "Every crisis has resolved itself to *new* highs", with "new" italicized. A chart shows the growth of a hypothetical $100 investment in the S&P 500 Index from 1936 to 2022, annotated with major crises like WWII, the tech bubble, and COVID-19. The CIBC logo is in the bottom left corner, and "CONFIDENTIAL" is centered at the bottom. The slide number "10" is in the bottom right corner.]

 

Right now, obviously there's a lot happening in the world, whether it's economically,  geopolitically.
We don't know or pretend to know how everything is going to play itself out, but what we do know, again, is that every result every crisis has resolved itself to new highs and I think it's important to have a positive and an optimistic outlook on life and you know, we don't need to put on our blinders and ignore everything and and pretend that there's not any real challenges in the world but things do resolve themselves and and that's how we view looking at short term volatility. And with that I'm going to pass things over to Harrison and he'll talk a bit about our investment strategies.

 

[Slide 11: The image is a slide with a solid maroon background. At the center, a quote is written in white text:  

“Some people say they want to wait for a clearer view of the future. But when the future is again clear, the present bargains will have vanished. In fact, does anyone think that today’s prices will prevail once full confidence has been restored?”  

At the bottom-left corner, the CIBC logo (Canadian Imperial Bank of Commerce) is displayed, featuring the text "CIBC" followed by a small diamond shape. Centered at the bottom, the word "CONFIDENTIAL" is written in uppercase white text. The slide number "11" is displayed in white text at the bottom-right corner. The slide appears to be part of a presentation discussing investment decision-making during uncertain times, with a focus on market confidence and pricing.]

 

Love, Harrison   11:09
Thank you, Ian.
I wanna start with a comment that was made 93 years ago in May of 1932 by Dean Witter.
He made this comment just a few weeks before the end of the worst bear market in history.
So at the time, he said, some people say they wait or want to wait for a clear view of the future. But when the future is again clear, the present bargains will have vanished.
In fact, does anyone think that today's prices will prevail once full confidence has been restored?
We find that clients are often looking for deals in their lives and they're happy to see their favorite item at a discount.
But it's not as often that when clients are talking with us and they're looking at the stock market, that they actually see it as being on sale when it pulls back. And we think this is an important thing to kind of bring up and talk about.
 

[Slide 12: The slide contains an infographic titled "Markets go down, even in overall up years. Expect it!" at the top. The main content is a graph titled "S&P intra-year declines vs. calendar year returns," with a subtitle: "Despite average intra-year drops of 14.1%, annual returns were positive in 34 of 45 years." The y-axis ranges from -60% to +40%, showing percentage changes, while the x-axis spans years from 1980 to 2025. Gray bars represent calendar year returns, and red dots indicate intra-year declines. For example, in 1980, the calendar year return was 26% with a -17% intra-year decline. In 2008, the return was -38% with a -49% intra-year decline. The year-to-date (YTD) data for 2025 shows a -5% return and a -10% decline. At the bottom, the source is cited as "JP Morgan Asset Management, Market Insights, Guide to the Markets | U.S. | 2Q 2025 | As of March 31, 2025." The CIBC logo is displayed at the bottom-left, and "CONFIDENTIAL" is centered at the bottom. The slide number "12" is at the bottom-right corner.]

 

Because if you're seeing the return of volatility to the markets like Ian mentioned, which as we discussed in January is always something we should be on the watch for after a positive and stable year like we had in 2024.
As we talked about in January, even if 2025 turns out to be an overall positive year for the markets.
Client and client portfolios, we could still expect a pullback in the equity markets of about 15% to be considered kind of normal breathing.
For reference, our dividend growth strategy pulled back about 10% off its highs in mid February to its low in mid-April of this year.
One thing you also need to keep, maybe even more in your mind is that moderate and extreme return fluctuations can also occur like in 2007 or 2020, and the only way to properly manage them is through managing our behavior.
This graph that we've shown here, we've shown you guys before too, and you know over time there's a lot of wealth creation.
This is the S&P 500 over 40 years and there's an average 10% return throughout the whole life of this chart.
But there's lots of ups and downs, right and periods where the market can be a bit uncomfortable.
So we just wanna keep this top of mind. 

 

[Slide 13: The slide features a table titled "Year-to-date strategy returns" in bold, dark red text. The table lists annualized returns (%) for various investment strategies over 1, 3, 5, and 10 years. Categories include "Canadian Focused Balanced Strategies," "Global Balanced Strategies," "Canadian Equity Strategy," "North American Equity Strategy," "U.S. Equity Strategy," and "Global Equity Strategy." For example, the "Canadian Dividend Income" strategy under "Canadian Equity Strategy" shows returns of 24.31% (1 year), 10.02% (3 years), 11.21% (5 years), and 7.87% (10 years). A note at the bottom states, "Source: AMA Program, gross of fees. As of May 31, 2025. *Returns are annualized for periods longer than one year. †Returns are in USD." The CIBC logo is at the bottom-left, "CONFIDENTIAL" is centered at the bottom, and the slide number "13" is at the bottom-right corner.]

 

And as we move on to the next slide and look at our strategy returns, you know they reflect that exact reality after a pull back through late February, March and April, all our equity strategies are now back into positive territory for the year, our balance strategies are also on positive numbers. After pulling back a few percent over that same period.
So with this tells us is that despite you know all these tariffs threats of recession, inflationary periods, military conflicts, people who actually allocated their money properly throughout there and let their portfolios run their course actually got rewarded for doing this.
So it's maybe a stretch to say that full confidence has been restored in the markets, but the prices from April surely aren't here with us today.

 

[Slide 14: The slide is titled "Income note strategy: Historic weighted coupon received" in bold red text. A line chart shows weighted coupon returns from January 2021 to May 2025. The y-axis ranges from 7.00% to 13.00%, and the x-axis displays dates. A red line fluctuates, starting very slightly above 12% in January 2021, dropping below 10%, and stabilizing very slightly below 10% by May 2025. A gray reference line marks an average of 10.18%. The source is cited as "R&R Investment Partners" and includes data from multiple financial institutions. The CIBC logo is at the bottom-left, "CONFIDENTIAL" is centered at the bottom, and the slide number "14" is at the bottom-right corner.]

 

We also want to briefly look at and remind on the income note strategy, which we continue to run as an attractive one for investors who are looking to generate income or diversify their portfolios.
In short, this is a strategy that generates income monthly.
But you should think of the principal as being invested for a number of years.
This graph we're seeing shows you the received coupons clients have actually gotten from holding this strategy, and it's averaged about 10.18%.
It got up to about 12% at one time, got down to about 8% at other times when couple of notes stopped paying according to their rules.
But we're still happy allocating this to people's portfolios where it makes sense.
 

[Slide 15: The slide is titled "How we invest your money: The Buckets" and features a chart with three metal buckets labeled "Stable," "Income," and "Long-term growth." The vertical axis represents "Possible fluctuations in value" (Low, Medium, High), and the horizontal axis represents "In how many years do you need the money?" (1, 2, 3, 4, 5+ years). The buckets are placed along a dotted diagonal line, symbolizing increasing risk and investment duration. The CIBC logo is at the bottom-left, "CONFIDENTIAL" is centered at the bottom, and the slide number "15" is at the bottom-right corner.]

 

And the way that we understand how it makes sense, as we've also talked about many times is the buckets.
And this is the best way to manage your allocations during periods of stress, just like during periods of calm.
Basically, if there's money you need to spend over the next couple of years, that's money we're gonna be always recommending that you keep in cash, maybe a GIC, or some high interest savings to earn a little bit of interest, but not taking on fluctuation of the principal.
Then when we're getting out to three to five years until you need the money back, that's where we start to look at balance strategies or maybe some income notes taking on some risk but being somewhat defensive at the same time.
And then for money, that's needed five or more years from now. That's where we're looking at all equity strategies.
But you could also consider, you know, things look like your real estate or your business as being part of that long term capital and you kind of want to take the same perspective on your stock portfolio that you would on your business or your real estate that you're going to hold for quite a long time.
 

[Slide 16: The slide compares the performance of "$2 million invested: Dividend Growth Strategy since May 2015 vs 3.00% GIC." A line graph shows two lines: a red line for the Dividend Growth Strategy, which grows from $2 million in May 2015 to over $5 million in May 2025, and a yellow/orange line for the GIC, which grows linearly to slightly above $2.5 million. The y-axis ranges from $1,500,000 to $6,000,000, and the x-axis spans May 2015 to May 2025. The source is cited as "F&R Investment Partners, AMA Composite Performance Reporting (Gross of Fees). As of May 31, 2025." The CIBC logo is at the bottom-left, "CONFIDENTIAL" is centered at the bottom, and the slide number "16" is at the bottom-right corner]

 

As an example, kind of the bucket three  strategies that we run for people, we can look at our dividend growth strategy.
It's 100% equity, 50% Canadian, 50% US and over the last 10 years that's what this chart is gonna the performance of the last 10 years, $2,000,000 invested is now about $5.4 million before fees.
But there's lots of fluctuations throughout this it's not just a one way street.
If you look at 2020. 2018, 2014 there's lots of ups and downs there, but there's lots of capital appreciation over time, right? In recent years, we've had the COVID crisis, the Ukraine War, Israel/ Palestine War, debt crisis, lots of changes with inflation, lots of elections.
But the businesses and investors are able to deal with these challenges and continue to grow. 

 

[Slide 17: The slide is titled "Long-Term Bucket Three: Dividend Growth Strategy" and features a bar chart showing yearly dividend growth performance from 2016 to 2025. The y-axis ranges from -10.00% to 30.00%, and the x-axis spans 2016 to 2025. Red bars represent performance, with notable years including 2018 (about -6%) 2019 (close to 20%) and 2024 (near 25%). A gray reference line marks an average return of 10.00% over the time period covered. The source is cited as "R&R Investment Partners, AMA Composite Performance Reporting (Gross of Fees). Performance figure for 2025 is year-to-date. As of May 31, 2025." The CIBC logo is at the bottom-left, "CONFIDENTIAL" is centered at the bottom, and the slide number "17" is at the bottom-right corner.]

 

When you look at the year to year returns of the dividend growth strategy, it's the same story, right?
There's an average of 10% overtime that people get by remaining invested in this strategy, but they never actually got that 10%.
And it's something that they got from staying in it for the whole time.
So you want to look at years where you're not doing as well as buying opportunities, years where the market's pulling back as buying opportunities and in this chart you can clearly see if you bought in in 2018 when the portfolio was down, your getting in at a time where you're followed by three very strong years.
 

[Slide 18: The slide is titled "You own quality businesses" in bold dark red text. Below, six company names are listed in two columns:  

- Left column: Coca Cola Co, Canadian Pacific Kansas City Ltd, Exxon Mobil Corp.  

- Right column: Intact Financial Corp, Loblaw Cos Ltd, Sun Life Financial Inc.  

At the bottom, a disclosure mentions CIBC's investment banking or securities-related services for some listed companies, and “this document is not to be construed as an offer to sell, or solicitation for, or an offer to buy any AMA strategy or other securities. Consideration of individual circumstances and current events is critical to sound investment planning. All investments carry a certain degree of risk. It is important to review objectives, risk tolerance, liquidity needs, tax consequences and any other considerations before choosing an AMA strategy.’

The CIBC logo is at the bottom-left, "CONFIDENTIAL" is centered at the bottom, and the slide number "18" is at the bottom-right corner.]

 

And it's no surprise when you look at what's under the hood when you look at the companies we own as investors in dividend growth, you know that here's an example of a few of them.
They're recognizable group of companies, they they continue to generate revenue regardless of the current environment because they're high quality businesses with products in demand.
It doesn't mean that they don't experience some ups and downs in their businesses or in their stock price, but they've been around and they expect that.
So when you plan for the future and you make sensible decisions, short term volatility can be absorbed by both companies and investors as well.
Now I'm going to hand it over to Randy, who's going to talk a little bit more about how we can apply some of these sensible strategies in our own lives.

 

[Slide 19: The slide is divided into two panels. The left panel has a maroon background with white text: "Jim Fullerton, Capital Group Chairman, November 1974." The CIBC logo is at the bottom-left, and "CONFIDENTIAL" is at the bottom-right. The right panel has a grayscale 3/4 portrait of a bespectacled man in a suit. The text "Source: capitalgroup.com" is at the bottom-right. The slide number "19" is at the bottom-right corner.]

 

Yozipovic, Randy   18:37
Thanks Harry.
Thank you, Harry.
This is a picture of Jim Fullerton.
He's a former chairman of a large investment firm in the US called Capital Group, and in 1974 he sent a letter to their investment clients about the difficult investing environment at the time, which was characterized by massive stock market correction, stagflation, oil issues in the Middle East and political troubles.
Sounds like today, and it's interesting because a lot of times people today say, boy, I've never seen anything like this.
And the conditions were very similar in 1974.
But the issue is anybody who's say 50 60 70 years old today with a significant net worth, even if they were alive in 1974, they weren't paying attention the way we are today.
And so Jim wrote this letter to their clients in 1974 talking about a similar terrible time, which was 1942 during World War Two, and he said today there's so many bewildering uncertainties and so many problems still facing us, both long and short, but there's no there's no hope for more than an occasional rally until some of these uncertainties are cleared up.
This is what he was saying, people were saying that this is a very difficult time and it's a terrible time.
It's a whole new ball game.
And he says, you know, in 1942, we knew it was a whole new ball game, we were losing the war, the Germans had overrun France, the British were thrown out of Dunkirk, the Pacific fleet, for the US Navy was destroyed at Pearl Harbor.
The British had surrendered Singapore. the US was so ill prepared for war that 75% of their field artillery was equipped with horse drawn French 75mm guns, model 1897. Inflation was rampant, prices were out of control and then all of a sudden one day economically things just started to get better.
And I think our whole theme of this message is that it's not different.
There's always stuff going on in the world.
There's stuff going on in the Middle East today.
There was in 1974.
Sound investment management, sound wealth management principles don't change.
 

[Slide 20: The slide is titled "Managing your real life: Keys to getting and staying wealthy" in bold red text. Below are six bullet points offering financial advice, such as "Invest your money like an institution" and "Be a long-term optimist." Sub-points emphasize generosity and sustainable spending. The CIBC logo is at the bottom-left, "CONFIDENTIAL" is centered at the bottom, and the slide number "20" is at the bottom-right corner.]

 

And so we want to talk about some of those on our next slide, which we refer to as managing your real life, not your theoretical life, not what the media's talking about, not what they're talking about on on the news, but your real life. So we believe that the first thing is we should invest our money like an institution.
What institutions do is they invest money for when they eventually need it back so if you need money for retirement in 30 years, let's say you're 30, you're retiring at 60, invest for the long term. If you have money and you need it back next week or in April for a tax bill, keep it liquid.
So invest the money for when you need it. That's how institutions invest, and more critically, they do not base their long term investment decisions on day-to-day feelings or day-to-day news movements, that's critical. For a family what's also critical is to update your will, and review who you want as your executor. This is an easy thing to not think about because it involves thinking about things that just aren't what we really want to talk about. But updating your will, making it current, making sure you're making sure your will says what you actually mean is critical, and how your life has changed.
And making sure your executor is somebody who's able, willing and capable for when you actually need them.
Now we talked about this earlier.
Keep your debts manageable.
Really hard to go bankrupt if you're debt free, keeping your debts manageable or down to zero helps people also have emotional resiliency.
Keep your spending sustainable.
Be on guard for lifestyle creep.
And as it relates to giving in relationships, I can tell you, you know in financial planning and in the wealth management  world, everybody gets focused on having this pot of money that will allow you to have financial freedom or do the stuff that you want to do.
But what makes that pot of money, good or useful, is actually having the people around that you care about and love that you can do stuff with.
And that's why we would encourage people to, you know, when we look at the most joyful clients we work with, they're generous and they're not generous because they have way too much money, they're just generous in spirit.
They invest in and enjoy their relationships because this is the true wealth of life and I think we all know that intuitively, but sometimes life gets in the way.
We would also encourage people be generous.
We're all going to give our money away one day for sure, and so you can be more intentional about it in your living about being generous.
It gives you joy.
It also helps you pay less tax.
But the joy filled part is definitely a big thing.
We would encourage people to be long term optimists.
Things work out, and even though as Ian mentioned, the markets are pretty much back to where they were in January and this periods gone through, we will have periods of time like this again, it's not if it's when. If we look at the next slide, we can see that.

 

[Slide 21: The image is a financial presentation slide featuring a line chart, text, and additional graphic elements.  

 

### Heading:  

- At the top, written in large maroon-colored text is the title:  

  "The power of staying invested vs 'I'm going to wait till the smoke clears'"  

 

Subheading/Explanation:  

- Directly below the title, there is context given:  

  "The Value of Staying Invested, Even Through Volatility in 2009"  

 

Chart Details:  

- The central part of the image is a line chart depicting three scenarios based on the S&P 500 Total Return:  

  1. Red Line: Represents "S&P 500 Total Return, with Cash since 3/9/2009 Total Return Growth." The red line is relatively flat and corresponds to very minimal growth over time.  

  2. Light Green Line: Represents "S&P 500 Total Return, with Cash between 3/9/2009 and 3/9/2010 Total Return Growth." This line shows moderate growth, but consistently underperforms the third line.  

  3. Dark Green Line: Represents "S&P 500 Total Return Growth." This line illustrates significant growth over time, demonstrating the highest returns compared to the other two lines.  

 

- The vertical axis represents the growth of an initial investment in dollars, with labels starting from $0 and climbing to beyond $600,000.  

- The horizontal axis represents time, spanning the date range of 12/31/2004 to 12/31/2024.  

 

Numerical Data:  

- A table above the chart shows the results for each investment strategy with two columns (VAL for value and ANN for annualized return rate):  

  1. Red (Cash since 2009):  

     - Value (VAL): $72.14K  

     - Annualized (ANN): -1.62%  

  2. Light green (Cash in 2009–2010):  

     - Value (VAL): $416.83K  

     - Annualized (ANN): 7.40%  

  3. Dark green (Fully invested):  

     - Value (VAL): $717.50K  

     - Annualized (ANN): 10.35%  

 

- These values are also labeled in the chart with corresponding markers in red, light green, and dark green to indicate the final amounts.  

 

Additional Notes Below Chart:  

- There are few disclaimers and footnotes:  

  - "Date Range: 12/31/2004 - 12/31/2024"  

  - "Initial Investment: $100,000. Past performance is no guarantee of future results. You cannot invest directly in an index."  

  - A timestamp in fine print: "Jan 7, 2025, 11:17 AM EST Powered by YCHARTS"  

 

Branding:  

- At the bottom left corner is a logo and name:  

  "CIBC" accompanied by a red diamond emblem.  

- A caption reads:  

  "Source: YCharts. Supercharged Asset Gathering: The Top Ten Visuals for Client and Prospect Meetings"  

 

Footer:  

- The bottom middle of the slide includes the text "CONFIDENTIAL" in all caps.  

- A slide number is located in the lower-right corner as "21".

 

Key Contextual Takeaway:  

- This slide is illustrating the importance of remaining fully invested in the market during volatile periods (such as the 2009 financial crisis), rather than attempting to time the market by staying in cash or delaying re-entry after a downturn. The clear message is that the strategy represented by the dark green line yields the highest long-term returns, while staying out of the market (red line) produces the poorest results. This slide is likely part of a financial advisory or investment presentation targeted at clients or prospects.]

 

And Harry pointed this out too.
Market fluctuations are just part of the process. This graph starts in 2005.
There's three key lines on this graph.
The red line is you kind of invested in 2005 you put away $100,000 you go through 2006, 2007, you make some money.
The market corrects heavily in 2009, the financial crisis. The theoretical investor following the red line converts to cash, stays there for the next, you know, period of time until 2025.
Their $100,000 is now worth 72,000.
The idea of I'm going to wait till the smoke clears and then getting a bit paralyzed, staying in cash, gives you that result.
The second investor, the light green line, they go to cash too, but they only stay there for one year, and their 100,000 grows to 416,000.
Much better than the person who went to cash. The next person, and keep in mind this is with their long term capital, right? This is bucket 3.
The long term person just stays invested.
They ride through the fluctuation of 09, allow the recovery to happen, go through the COVID correction.
Allow the recovery to happen in 2022 when rates started moving up and tech stock starts selling off a rode through that correction just left their money alone, left their long term bucket three money alone and it's $717,000.
The the idea of waiting for the smoke to clear might make us feel better in the short term, but it doesn't get us closer to our goals.
We should not only leave our long term money alone, but we should systematically add to it when their sell off.
So our message today is because we're not in the midst of a sell off is when the next one happens. That's a great time to add to your portfolio. If you have cash instead of waiting till the smoke clears.
And it's also a great time just to make sure that you stay invested. And so what we would say in a time like this, where things have recovered, if you think you might need extra cash, you think you might have some things coming up. Now is a pretty good time to raise that cash.
Not market time, but for your actual spending needs and your real life that that you all live. If you look at the top of the the screen on your computer there's a Q&A and a icon.

 

[Slide 22.PNG: The image is a presentation slide with minimalistic design elements, primarily intended to conclude a presentation and invite questions.  

Background:  

- The slide has a plain white background, giving it a clean and professional appearance.  

Text:  

- The word "Questions?" is written in bold, maroon color and is positioned slightly off-center to the left of the slide. This is most likely to prompt or invite questions at the end of a presentation.  

- The word "CONFIDENTIAL" is written in small, light gray, uppercase letters at the bottom center of the slide, indicating that the content of the slide might contain sensitive or proprietary information.

- The number "22" is present in the bottom-right corner of the slide. This is likely a page or slide indicator, suggesting it’s the 22nd slide in the presentation.]

 

It says Q&A and there's a question mark above it and if you click on that you can ask a question.
We're happy to answer any questions that you may have if your question is more personal in nature or more specifically about your portfolio that it should be more of a one-on-one conversation, we're happy to take that offline and do that while we're waiting for questions to come in. We would say we really hope that you all enjoy your summer.
And enjoy the good weather that we.
Have been having and look to be having. We would also say that if you have a friend, a colleague, somebody who needs assistance and you'd like to share this webinar, you can do that without any obligation.
Just send Pedro an email and he'll get you the details on how to to do that.
I don't see any questions that have come in, but if you have one after and you wanna send an email that would be perfect.
Keats, looking in the wrong spot or there are no questions.

Love, Harrison   27:38
Don't see any.

Jabri  Pickett, Keats   27:39
Nope, I don't see any on my end either.

Yozipovic, Randy   27:40
OK, perfect.
Thank you. On behalf of Ian Harrison and myself, we thank you very much for tuning in.
We appreciate your trust in allowing us to work and serve your families and have a wonderful summer, and we'll talk to you all soon. Take care.

 

[Slide 23: The image contains a disclaimer section related to financial services provided by CIBC (Canadian Imperial Bank of Commerce) or its subsidiaries.  

 

### Header:  

- "Disclaimers" - The word appears at the top left of the image in red bold text, emphasizing the purpose of the document.  

 

### Body Text:  

The main body consists of several disclaimers and conditions written in smaller, black text. The content is divided into paragraphs and addresses different aspects of financial services:  

 

1. Introduction:  

   - Mentions that CIBC Private Wealth offers services via CIBC and its subsidiaries such as CIBC Wood Gundy, which is a division of CIBC World Markets Inc.  

   - States that "CIBC," the "CIBC logo," and "CIBC Private Wealth" are trademarks of CIBC, used under license.  

   - Clarifies that "Wood Gundy" is a registered trademark of CIBC World Markets Inc.  

 

2. Reliability and Purpose of Information:  

   - States that the information provided (including opinions) is based on various sources deemed reliable but isn't guaranteed for accuracy and is subject to change.  

   - Mentions that employees of CIBC and its affiliates may engage in buying, selling, or holding positions in securities and may offer financial advisory, investment banking, or other services.  

 

3. Advisory Disclaimer:  

   - The presentation is for informational purposes only and does not constitute a recommendation, solicitation, or offer to buy, hold, or sell any security.  

 

4. Insurance Services:  

   - Insurance services are offered through CIBC Wood Gundy Financial Services Inc.  

   - In Quebec, these services are provided through CIBC Wood Gundy Financial Services (Quebec) Inc.  

 

5. Rates, Yield, and Investment Amounts:  

   - Mentions that yields and rates are as of May 31, 2025, and are subject to availability and change without notification.  

   - Minimum investment amounts may apply.  

 

6. Portfolio Disclaimer:  

   - Discusses that portfolio evaluations or consolidated statements are for assistance purposes and are not official records.  

   - Advises clients to consult their official account statements or tax slips for accurate reporting.  

   - Some securities may not be covered by the Canadian Investor Protection Fund (CIPF).  

 

7. Benchmarks and Calculations:  

   - Calculations and projections are based on assumptions and actual results may differ.  

   - Notes that performance benchmarks generally exclude dividend values unless specifically tied to a "Total Return Index."  

 

8. Client Responsibility:  

   - Advises clients to consult personal tax and legal advisors for specific circumstances.  

 

9. Contact Information:  

   - Encourages current CIBC Wood Gundy clients to contact their Investment Advisor.  

   - States that Randy Yozipovic, Ian Munro, and Harrison Love are Investment Advisors with CIBC Wood Gundy.  

 

Footer:  

- Logo:  

   - The CIBC logo is located at the bottom left corner in red and yellow colors.  

- Confidential Marking:  

   - The word "CONFIDENTIAL" is centered at the bottom in uppercase and gray text.  

- Page Number:  

   - The image shows a page number ("23") in the bottom-right corner, suggesting that it is part of a larger document or presentation.]

 

[Slide 24: The image provided is of a document that primarily consists of text related to disclaimers and investment information from CIBC (Canadian Imperial Bank of Commerce).  

 

Header:  

- Title: "Disclaimers" written in bold red text.  

 

Body Text (Black Text):  

- The document provides detailed disclaimers and explanations related to investment performance and strategies offered by CIBC Wood Gundy Advisor Managed Accounts (AMA).  

 

Key Points from the Text:  

1. Performance Results:  

   - Performance results are based on a composite of CIBC Wood Gundy AMA accounts with more than $75,000 invested.  

   - Composite inception dates are determined by the second month that the first AMA account was included in the strategy.  

   - Closed AMA accounts that held the strategy until its conclusion are included in the composite.  

 

2. List of Investment Strategies:  

   - A table is provided with two columns:  

     Composite/Strategy Name and Inception Date.  

 

     Table Content:  

      - Moderate Growth: Mar 2007  

      - Dividend Growth: Mar 2007  

      - Income & Growth: Apr 2007  

      - Canadian Dividend Income: Mar 2009  

      - Dynamic Growth: Aug 2009  

      - Income: Jan 2010  

      - U.S. Dividend Income: Feb 2017  

      - R&R Global Equity: Sep 2021  

      - N. American Dividend Income: Jun 2023  

 

3. Performance Returns:  

   - Performance returns are geometrically linked and weighted against the market value at the beginning of each month.  

   - Returns are calculated gross of investment management fees and other expenses.  

 

4. Factors Affecting Individual Results:  

   - Individual AMA performance results may differ due to account size, length of strategy use, cash flows, market conditions, trading prices, foreign exchange rates, and client constraints.  

 

5. Disclaimers on Future Performance:  

   - Past performance is not indicative of future results.  

   - The document is informational and subject to change without notice.  

 

6. Legal Disclaimers:  

   - The presentation should not be considered as an offer to sell or solicit investments.  

   - Investments carry risks, and clients should evaluate objectives, risk tolerance, tax consequences, and liquidity needs before choosing any strategy.  

 

Footer:  

- CIBC Logo:  

   - Located in the bottom-left corner of the document.  

   - The logo consists of the word "CIBC" in bold red letters alongside a geometric diamond-like icon.  

 

- Label:  

   - At the bottom-right corner, the word "CONFIDENTIAL" is written in capital letters to indicate that the document contains sensitive information.  

 

- Page Number:  

   - At the bottom-right corner, the number "24" suggests that this is page 24 of a larger document or presentation.  

 

Formatting Notes:  

- The text appears structured and formal, with paragraphs and bullet points.  

- Text is predominantly black, except for the red title ("Disclaimers") and the red CIBC logo in the bottom-left corner.  

- The document balances text with minimal spacing between sections but is relatively dense.  

 

Overall Context:  

The image appears to be a page from a professionally prepared investment or financial disclosure document, likely part of a presentation or report for clients or stakeholders of CIBC. The focus is on explaining the performance results and legal disclaimers regarding various investment strategies managed by CIBC Wood Gundy. The document stresses the importance of understanding risks and ensuring investments align with a client’s objectives and financial circumstances.]

Munro, Ian   27:57
Thanks everyone.

Love, Harrison   27:59
Thank you.