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The Growth and Income model portfolios closed 2024 with exceptional results, demonstrating our disciplined approach and ability to navigate evolving markets. Over the year, the Growth Portfolio delivered a strong 23.7% return, the Income Portfolio surged by 41.0%, and the American Growth Portfolio gained a solid 16.4%. These outcomes highlight the strength of our strategies and our focus on delivering value for our investors.
December saw notable market volatility, influenced by mandatory retirement withdrawals as a growing number of Boomers reach age 71. This dynamic, which we expect to shape December markets for the next decade, created temporary liquidity challenges that quickly set the stage for a rebound. Historically, elevated Volatility Index (VIX) levels like those seen in December have been followed by strong market returns over the next six to twelve months, giving us an optimistic view for 2025.
Key macroeconomic factors support this positive outlook. Government spending remains robust, driving consumption—the cornerstone of gross domestic product (GDP) growth. Employment markets continue to exhibit strength, fostering wage growth and supporting broader economic activity. Additionally, the integration of recent immigrants into the workforce should enhance long-term GDP potential, following historical trends.
Banks are responding to rising incomes with increased lending, fuelling credit expansion and economic growth. This dynamic is a crucial driver of equity performance and supports our long-term strategies.
On the geopolitical front, potential progress on U.S.-China trade relations could provide additional tailwinds. A reduction in tariffs, coupled with China’s purchase of long-term U.S. Treasury bonds, may ease inflationary pressures and support sustained economic stability.
The rise of passive investing also presents opportunities, as its growing influence disproportionately benefits large indexed stocks. As passive investments surpass the critical 50% threshold, we expect this trend to accelerate, potentially creating new cycles of exponential growth.
For investors, these evolving dynamics underscore the importance of high-quality, cash-flow-generating companies. Our strategy is designed to capitalize on these opportunities, and we remain committed to helping our clients achieve their financial goals.
Thank you for your trust and partnership. As we move into 2025, we look forward to building on this year’s successes together. Please share this update with friends and family who may be interested in our approach and results. We welcome the opportunity to expand our community of investors and create lasting success.
Model Portfolio Highlights
Growth Portfolio In December, we repositioned holdings by selling Colliers and reducing our stake in Microsoft. This allowed us to invest in Kinaxis, a leader in supply chain technology, and WELL Health, an innovator in outpatient health solutions.
American Growth Portfolio No changes in December.
Income Portfolio No changes; we maintain a diversified mix of U.S. and global high-quality stocks.
Our approach targets opportunities with a significant margin of safety with minimal risk of permanent loss. Patience remains essential in realizing long-term gains.
For questions about your portfolio or to schedule a meeting, please contact us. Thank you.
Yours,
Ben
Ben W. Kizemchuk
Portfolio Manager & Investment Advisor
Wellington-Altus Private Wealth
Office: 416.369.3024
Email: bwk@wellington-altus.ca
Book a meeting
Ben Kizemchuk offers full-service wealth management for high-net-worth Canadians including families, business owners, and successful professionals. Ben and his team provide investment advice, financial planning, tax minimization strategies, and retirement planning.
Performance reporting disclaimer: Performance results reflect the returns of each representative model portfolio. Returns are calculated using each model portfolio’s monthly performance, including changes in securities values, and accrued income (i.e., dividend and interest), against its market value at the closing of the last business day of the previous month. Performance results are expressed in the stated strategy’s base currency and are calculated on a net of fees basis. Individual account performance may materially differ from the representative performance history set out in this document, due to factors such as an account’s size, the length of time the strategy has been held, the timing and amount of deposits and withdrawals, the timing and amount of dividends and other income, and fees and other costs. Investors should seek professional financial advice regarding the appropriateness of investing in any investment strategy or security and no financial decisions should be made solely on the basis of the information provided in this document. This is not an official statement from WAPW. Please refer to your official WAPW statement for your specific performance numbers.
Market Commentary
January 2025 Update
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The Growth and Income model portfolios closed 2024 with exceptional results, demonstrating our disciplined approach and ability to navigate evolving markets. Over the year, the Growth Portfolio delivered a strong 23.7% return, the Income Portfolio surged by 41.0%, and the American Growth Portfolio gained a solid 16.4%. These outcomes highlight the strength of our strategies and our focus on delivering value for our investors.
December saw notable market volatility, influenced by mandatory retirement withdrawals as a growing number of Boomers reach age 71. This dynamic, which we expect to shape December markets for the next decade, created temporary liquidity challenges that quickly set the stage for a rebound. Historically, elevated Volatility Index (VIX) levels like those seen in December have been followed by strong market returns over the next six to twelve months, giving us an optimistic view for 2025.
Key macroeconomic factors support this positive outlook. Government spending remains robust, driving consumption—the cornerstone of gross domestic product (GDP) growth. Employment markets continue to exhibit strength, fostering wage growth and supporting broader economic activity. Additionally, the integration of recent immigrants into the workforce should enhance long-term GDP potential, following historical trends.
Banks are responding to rising incomes with increased lending, fuelling credit expansion and economic growth. This dynamic is a crucial driver of equity performance and supports our long-term strategies.
On the geopolitical front, potential progress on U.S.-China trade relations could provide additional tailwinds. A reduction in tariffs, coupled with China’s purchase of long-term U.S. Treasury bonds, may ease inflationary pressures and support sustained economic stability.
The rise of passive investing also presents opportunities, as its growing influence disproportionately benefits large indexed stocks. As passive investments surpass the critical 50% threshold, we expect this trend to accelerate, potentially creating new cycles of exponential growth.
For investors, these evolving dynamics underscore the importance of high-quality, cash-flow-generating companies. Our strategy is designed to capitalize on these opportunities, and we remain committed to helping our clients achieve their financial goals.
Thank you for your trust and partnership. As we move into 2025, we look forward to building on this year’s successes together. Please share this update with friends and family who may be interested in our approach and results. We welcome the opportunity to expand our community of investors and create lasting success.
Model Portfolio Highlights
Growth Portfolio In December, we repositioned holdings by selling Colliers and reducing our stake in Microsoft. This allowed us to invest in Kinaxis, a leader in supply chain technology, and WELL Health, an innovator in outpatient health solutions.
American Growth Portfolio No changes in December.
Income Portfolio No changes; we maintain a diversified mix of U.S. and global high-quality stocks.
Our approach targets opportunities with a significant margin of safety with minimal risk of permanent loss. Patience remains essential in realizing long-term gains.
For questions about your portfolio or to schedule a meeting, please contact us. Thank you.
Yours,
Ben
Ben W. Kizemchuk
Portfolio Manager & Investment Advisor
Wellington-Altus Private Wealth
Office: 416.369.3024
Email: bwk@wellington-altus.ca
Book a meeting
Ben Kizemchuk offers full-service wealth management for high-net-worth Canadians including families, business owners, and successful professionals. Ben and his team provide investment advice, financial planning, tax minimization strategies, and retirement planning.
Performance reporting disclaimer: Performance results reflect the returns of each representative model portfolio. Returns are calculated using each model portfolio’s monthly performance, including changes in securities values, and accrued income (i.e., dividend and interest), against its market value at the closing of the last business day of the previous month. Performance results are expressed in the stated strategy’s base currency and are calculated on a net of fees basis. Individual account performance may materially differ from the representative performance history set out in this document, due to factors such as an account’s size, the length of time the strategy has been held, the timing and amount of deposits and withdrawals, the timing and amount of dividends and other income, and fees and other costs. Investors should seek professional financial advice regarding the appropriateness of investing in any investment strategy or security and no financial decisions should be made solely on the basis of the information provided in this document. This is not an official statement from WAPW. Please refer to your official WAPW statement for your specific performance numbers.
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December 2024 Update
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November 2024 Update
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October 2024 Update
Join the mailing list here The Growth and Income model portfolios performed well in September,
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The opinions contained herein are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Wellington-Altus Private Wealth. Assumptions, opinions and information constitute the author’s judgement as of the date this material and subject to change without notice. We do not warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance of any investment. 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. All third party products and services referred to or advertised in this presentation are sold by the company or organization named. While these products or services may serve as valuable aids to the independent investor, WAPW does not specifically endorse any of these products or services. The third party products and services referred to, or advertised in this presentation, are available as a convenience to its customers only, and WAPW is not liable for any claims, losses or damages however arising out of any purchase or use of third party products or services. All insurance products and services are offered by life licensed advisors of Wellington-Altus. Wellington-Altus Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. All trademarks are the property of their respective owners.