September 2026 Portfolio Memo

Market commentary

Global stock markets have essentially flatlined since early June. The good news is that they have been consolidating near all-time highs. Despite several months of limited progress, year-to-date—and certainly longer-term—returns remain excellent.

The bond market has been less resilient, with Canadian bonds falling 2.6% from June through September.¹ Once again, traditional and index-based bond strategies have disappointed both in total returns and as a source of diversification.

We have long argued that investors with appropriate liquidity needs and circumstances should maintain a healthy allocation to private assets. The objective is to improve diversification and enhance a traditional portfolio of stocks and bonds. Over the past several months, our private-asset strategies have done exactly that, producing positive returns while traditional markets have languished.²

Periods of flat stock-market returns—often called consolidations—are generally healthy, particularly when corporate earnings and economic fundamentals remain strong, as they have. When earnings rise while stock prices remain flat, valuations improve. Periods of stability also give investors an opportunity to assess market conditions and proactively rebalance their portfolios.

Consider the backdrop: interest rates near their highest levels in decades, sky-high energy prices, multiple major wars, pending U.S. midterm elections, and the ongoing political circus south of the border. I could go on, but you get the point—it is an unsettling time.

Against that backdrop, it is quite impressive that global stocks remain within a few percentage points of their all-time highs. If even some of the major sources of uncertainty are resolved, markets could be positioned for an impressive rebound.

We used the weakness in fixed income as a tax-saving opportunity in taxable accounts. By realizing losses and temporarily repositioning the proceeds into different fixed-income investments during the superficial-loss period (30 days), we were able to offset a meaningful portion of capital gains realized so far this year. This is one example of how we continually look for opportunities to optimize your portfolio, retirement income, estate plan—ultimately, your wealth.

Chart of the month: President Trump’s report card

It is often said that President Donald Trump considers the stock market his report card. If that is the case, he has earned an A+ from the rest of the world.

Given his administration’s aggressive “America First” policies, that is probably not the outcome most investors expected. Its objectives of lowering energy prices and bond yields while weakening the U.S. dollar have also failed to materialize. In fact, all three have moved substantially in the opposite direction.

I’ll stay in my lane and leave the political commentary to others. What I am qualified to comment on is portfolio management, and this is a great example of why diversification is so important—and so often rewarding. The investments expected to perform best don’t always deliver. You simply never know what the future holds; invest accordingly.

Content Recommendation: Canada is a sleeping giant economically

Blackstone President Jon Gray identifies Canada as an economic “sleeping giant,” citing its immense natural resources and skilled talent as key strengths. He suggests that by addressing historical regulatory

and permitting challenges, Canada can leverage its low-cost energy and abundant land to attract private capital and drive significant future growth.

Canada is a Sleeping Giant Economically

Portfolio strategy:

Debt

Liquid fixed income

• Government bond yields continued their climb to multi-decade highs.
• Recently, the attention has shifted from the U.S. to European bond markets.
• Our long-standing underweight government bonds and interest rate exposure (duration) has benefited portfolios relative to the bond index.

Private credit

• Our modest exposure in Balanced and Conservative mandates continues to deliver solid returns, providing excess return over liquid credit and portfolio diversification benefits.
• Rising interest rates tends to benefit private credit investors because most loans are floating rate.

Equity

Public equity (stocks)

• September delivered another month of benign equity market returns.
• Positive returns have been concentrated amongst big tech.
• 59% of stocks in the S&P 500 are currently down 20% or more from their highs (bear market).³

Private equity

• Our allocation to high quality portfolios run by the world’s most respected managers gives portfolios diversification and a broader opportunity set. This is comforting to us in an era defined by high concentration in public markets.

Real assets

Real estate

• Portfolios contain only minimal real estate exposure through a small allocation in Apollo Aligned Alternatives.
• Returns seem to be improving, but on balance, we see better opportunities in infrastructure.

Infrastructure

• Several large “nation building” infrastructure projects in Canada have been announced in recent months.
• Global private asset managers are critical partners in funding these initiatives.
• We are pleased to gain exposure to these attractive assets and contribute to the Canadian economy through multiple funds in our portfolios.

¹  https://www.vanguard.ca/en/product/etf/fixed-income/9552/vanguard-canadian-aggregate-bond-index-etf

² A composite of an equal allocation to six different evergreen private asset funds held by clients.

³ Yahoo Finance, October 12, 2026

The information contained herein has been provided for information purposes only. The information has been drawn from sources believed to be reliable. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document. Wellington-Altus Private Wealth Inc. (WAPW) does not guarantee the accuracy or completeness of the information contained herein, nor does WAPW assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Before acting on any of the above, please contact your financial advisor.