2025 was a year of going “all in.” 

Markets were shaped by speculative behavior, rapid innovation, and an appetite for risk that rewarded momentum over valuation discipline. Entering the year, we were mindful that equity valuations were already elevated, earnings growth was narrowly concentrated, interest-rate cuts had limited impact on long-term yields, and a new U.S. administration introduced fresh uncertainty around trade and policy. With these dynamics in mind, portfolios were positioned conservatively, emphasizing income, diversification, and downside protection.

 

That positioning proved valuable during the sharp market drawdown in the first quarter, when tariff concerns and AI-related volatility briefly took center stage. As the year progressed, however, markets rebounded strongly, led by retail participation, high-beta stocks, and narrow sector leadership. Valuation anchors were largely ignored, and riskier assets, from speculative technology to crypto and commodities, drove outsized returns. In this environment, our disciplined, growth-at-a-reasonable-price approach delivered returns that exceeded our financial planning expectations while prioritizing capital preservation amid rising market risk.

 

Looking ahead to 2026, we remain mindful that momentum can persist, but elevated valuations, concentrated leadership, geopolitical uncertainty, and structural shifts such as the rise of private credit warrant caution. Our focus remains unchanged: protecting the strong gains of the past three years, managing risk thoughtfully, and maintaining the flexibility to act when opportunities become more attractively priced.

 

Please note: a full-length year-end recap, along with your detailed annual performance reports, will be mailed to you shortly.

 

TAG Partners
Feature of the Month

Nicola Elkins
BENEFACTION FOUNDATION
TEP, CFRE, MFA-Philanthropy, MSc – Founder & CEO

Nicola is President of Cause Strategies Inc., Benefaction’s charitable wealth management solutions provider since 2008. She is also Founder and CEO of Benefaction Foundation. She has built a reputation as a valuable resource for those who want to integrate charitable giving into their client’s financial, estate and succession plans. Prior to establishing Cause Strategies Inc., Nicola spent 20 years in the financial services industry holding several senior roles. She has an MSc from the London School of Economics and a BA from McGill University. She is the managing editor of the Master Financial Advisor - Philanthropy course offered by the Knowledge Bureau. She is also past President of Rotary Club of Westmount (QC) and of Le Manoir, a home for independent seniors living in Westmount (QC). Currently, Nicola sits on the CAGP Government Relations Committee and is Co-Chair of its Donor Advised Fund Working Group.

At Benefaction, they believe it is their responsibility to help Canadians and their Advisors harness the advantages of strategic giving. They have built a reputation as a valuable resource for investment, legal and tax professionals who desire a more comprehensive understanding of the role of charitable giving in their client’s financial and estate plan. They pride themselves on upholding the highest ethical standards. They believe in doing the right thing, the right way: giving conscious consumers the opportunity to create meaningful legacies for the causes they value most.

Nicola has been instrumental in helping TAG and our clients build strong foundations for their philanthropic goals. Through her leadership at Benefaction, she has streamlined the process for creating and managing donor-advised funds, enabling our clients to make meaningful charitable gifts, support important causes, and leave lasting legacies that truly improve lives and strengthen communities.

www.benefaction.ca

 

 

T.A.G. Team Spotlight: Meet Stuart Pulkinen

 

 

The Applegath Group believes that true partnerships go beyond numbers—it’s about understanding your story, supporting your dreams, and helping you navigate every chapter of life. Our team has grown and evolved with these values at the heart of everything we do, and we’re excited to introduce you to the dedicated professionals who make it all possible.

Over the coming series of TAG Talks, we’ll be sharing a closer look at each of our eight team members: their expertise, passions, and the ways they’re here to support you and your family. We hope these stories help you feel even more connected to the people behind The Applegath Group.

We’re excited to begin our new series introducing the talented individuals who make up our team starting with someone who’s already become an integral part of our team: Stuart Pulkinen.
Since joining us, Stuart has brought over a decade of experience in finance and wealth management to our clients and team. With a bachelor’s degree in finance from Adelphi University in New York and the Chartered Investment Manager (CIM) designation, Stuart’s expertise is matched only by his thoughtful approach to helping clients reach their goals.

Before coming to CIBC, Stuart spent five years at another leading financial institution and started his career as an analyst at a market-neutral hedge fund in Toronto, focusing on equity research. These experiences helped shape his disciplined, strategic approach to portfolio management, asset allocation, and fund manager research.

Stuart is passionate about designing tailored investment solutions, always with an eye for market trends and a commitment to building portfolios that reflect each client’s unique needs.
Outside the office, you’ll often find Stuart enjoying time on the golf course or cheering on the Toronto Raptors with his wife, Xochil, his friends and family. He brings the same warmth and dedication to his personal life as he does to his work.

We’re grateful to have Stuart as part of The Applegath Group and look forward to sharing more about the wonderful people who make our team so special.

 

 

 

T.A.G. Admin: Annual Reminders

 

As we welcome the New Year, we wanted to offer you a few helpful reminders. Being able to enjoy your life and meet all of your financial goals means organizing and prioritizing your cash flow early on.

 

Registered Retirement Savings Plan (RRSP)
The maximum RRSP contribution limit for 2026 is 18% of previous year’s earned income, up to $33,810, less pension adjustments.  For 2025, your contribution limit will be 18% of the previous year’s earned income up to $32,490, less pension adjustments. As a reminder, the deadline for contributions, for the 2025 tax year, is March 2, 2026. 

 

Tax-Free Savings Account (TFSA)
Each year, many clients are surprised to realize how much cash quietly sits in non-registered accounts, savings accounts, or chequing accounts longer than intended. A TFSA remains one of the most efficient tools available to ensure those dollars are working harder for you, tax-free, while still remaining accessible.

 

Residents of Canada, aged 18 and older can contribute up to $7,000 in a TFSA for 2026. All income (interest, dividends and capital gains) earned in your TFSA grows tax-free, for life. You can make withdrawals from your TFSA at any time, for any reason tax-free. Furthermore, you can redeposit any amounts withdrawn in previous years. Please note, if you have more than one TFSA account, the annual limit is valid per person and not per account. There is a lifetime maximum contribution of $109,000.

 

Registered Education Savings Plan (RESP)
To those of you with children, or grandchildren that you are contributing, please be reminded that December 31, 2026 is the deadline for making your annual contribution.  Take advantage of the maximum annual Canada Education Savings Grant of $500, paid on a $2,500 contribution.

 

How we can support you in funding your RRSP / TFSA / RESP:

 

1. Pre-Authorized Contribution (PAC) Plans – our recommended option
For clients who anticipate new contributions in 2026, a PAC plan offers a simple and disciplined way to build savings over time using available cash flow.

 

To set this up:
•    Contact Mara Draper with your preferred contribution amount and frequency
•    You will be provided a Pre-Authorization Form for your review and signature
Once in place, contributions occur automatically, helping ensure opportunities aren’t missed throughout the year.

 

2. Transfers from existing non-registered accounts
As always, we are happy to facilitate transfers from your non-registered investments as part of your overall planning strategy.

 

3. Cheque contributions or one-time transfers
You may also contribute by cheque or by requesting a one-time transfer.

Our goal with this reminder is simply to ensure you are aware of the options available and to help identify cash that may otherwise remain idle. Our process will ensure we continue to do this on your behalf, unless told otherwise.