{"id":914,"date":"2026-09-11T15:55:47","date_gmt":"2026-09-11T15:55:47","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/constellationwealthmanagement\/?p=914"},"modified":"2026-09-11T15:55:47","modified_gmt":"2026-09-11T15:55:47","slug":"summer-2026-portfolio-memo-2","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/constellationwealthmanagement\/summer-2026-portfolio-memo-2\/","title":{"rendered":"Summer 2026 Portfolio Memo"},"content":{"rendered":"

Market commentary<\/strong><\/p>\n

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When we last wrote in early July, oil prices were falling and the conflict with Iran appeared to be easing. That proved short-lived. Tensions built through the summer, oil prices rose and the prospect of the Strait of Hormuz reopening soon became increasingly remote.<\/p>\n

Meanwhile, the normally boring bond market captured headlines. The U.S. government continues to borrow at a rapid pace, and investors are demanding higher yields in return. The 30-year U.S. Treasury yield reached 5.24% on September 4, its highest level in nearly 20 years. Concerns are mounting about the cost of servicing all that debt at higher rates. Yet the current yield is only slightly above its 40-year average of roughly 5.1%, a reminder that rates could remain elevated\u2014or move higher\u2014from here.\u00b9<\/p>\n

The Trump administration\u2019s proposed solution is to \u201cgrow its way out\u201d of the debt. That is a bit like planning to pay off your mortgage by winning the lottery: possible, but probably not a great standalone strategy.<\/p>\n

The other topic on everyone\u2019s mind is the Canada-U.S. trade dispute. We expect it to be resolved relatively quickly because the consequences of a prolonged fight are simply too high for both sides. President Trump also wants another deal to announce after seeing the last one unravel at the final moment. Don\u2019t be surprised if you wake up to news of \u201cthe best trade deal ever!\u201d Yes, we have heard that before.<\/p>\n

The process will not be pain-free, but we believe Canada can emerge stronger. Currency markets have offered some support for that view: the Canadian dollar strengthened against the U.S. dollar through August.\u00b9<\/p>\n

Portfolios continued their strong run. All three mandates\u2014Growth, Balanced and Conservative Income\u2014captured less of the downside when markets fell in July, then outpaced their benchmarks as markets recovered in August. That extends the streak to six months and coincides with the completion of the portfolio changes tied to our long-term strategy.<\/p>\n

Wellington-Altus has allowed us to build a more sophisticated and diversified private-asset allocation. Implementation took several months, but the results have been encouraging. Despite persistent market noise and widespread uncertainty, we believe the portfolios are well positioned to manage the risks ahead and keep clients on track toward their long-term objectives.<\/p>\n

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Chart of the month: Canada Pension Plan<\/span><\/strong><\/span><\/p>\n

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Global SWF\u2019s May 2026 review<\/a> of major pension and sovereign wealth funds ranked CPP Investments second among global public pension funds for 10-year annualized returns across fiscal years 2016 to 2025. CPP Investments delivered an average annual return of 8.34% over that period; only Sweden\u2019s AP7 ranked higher.\u00b2<\/p>\n

The health of the Canada Pension Plan matters to all of us. It is reassuring to know the plan remains financially sustainable for generations to come. Canada\u2019s model should also be a point of pride: CPP Investments helped reshape how large public pension plans are governed and invested, and institutions around the world have studied its approach for decades.\u00b2<\/p>\n

Constellation Wealth is among a relatively small group of private wealth managers that model portfolio construction on similar principles: broad diversification, long time horizons and meaningful exposure to private markets. Our Growth and Balanced mandates have both exceeded CPP Investments\u2019 return over the past five years\u2014a result we are proud of.<\/p>\n

Content Recommendation:<\/strong><\/p>\n

I\u2019m not typically a huge Joe Rogan fan, but I spent much of the summer recommending his interview with Marc Andreessen. Andreessen is the co-founder of Andreessen Horowitz, one of the world\u2019s most influential venture-capital firms, so he knows a thing or two about technology. I found his perspective on artificial intelligence particularly interesting\u2014and surprisingly reassuring.<\/p>\n

Watch the Marc Andreessen interview on YouTube<\/strong><\/a><\/p>\n

Listen on Apple Podcasts<\/strong><\/a><\/p>\n

Listen on Spotify<\/strong><\/a><\/p>\n

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Portfolio strategy<\/strong><\/p>\n

Debt<\/strong><\/p>\n

Liquid fixed income<\/p>\n