Zelos Soundbites

We are pleased to share the December 2025 edition of the Zelos Ridgeline, our first update of the new year. As is customary, this edition reflects on how markets closed out 2025, highlights key contributors across the Zelos model portfolios, and outlines the themes shaping the investment landscape as we move into 2026. Markets Market Context: Strong Results, Uneven Leadership December saw a more cautious tone across global markets. In the U.S., major indices pulled back as investors digested bank earnings, inflation data, and shifting expectations for monetary policy. Gold and silver, meanwhile, surged to record highs as safe‑haven demand strengthened. Bond yields moved higher late in the month, pressuring fixed income returns. Despite the quieter finish, 2025 will be remembered as a strong but uneven year, marked by concentrated leadership in select equity segments and meaningful dispersion across regions and asset classes. These dynamics were front and centre in early-January conversations at Davos, where themes such as persistent geopolitical uncertainty, fiscal sustainability, and the longer-term implications of artificial intelligence and productivity dominated discussion. While near-term forecasts continue to shift, the consensus remains that volatility and dispersion are likely features, not bugs, of the investment landscape in 2026. Zelos Model Portfolio Update Against this backdrop, the Zelos model portfolios finished 2025 on solid footing. As at December 31, 2025, one-year returns ranged from approximately 6.7% to 10.7%, depending on mandate. More importantly, these results were delivered with meaningfully lower volatility than broad equity markets, reinforcing our core objective: to compound capital over full market cycles while managing downside risk. As we approach seven years of track record in early 2026, we believe this disciplined, diversified approach continues to differentiate Zelos in an environment where headline index returns often mask underlying risk. This track record stands the test of time and has shown resilience in drawdown periods like COVID-19 and 2022. Looking Ahead to 2026 As we look ahead to 2026, one theme continues to stand out across global markets: the scale and momentum of investment into artificial intelligence. Capital spending on AI, ranging from cloud infrastructure to semiconductors to data‑driven enterprise systems, has become large enough to meaningfully influence economic activity and market leadership. While technology companies remain at the forefront, the ripple effects are expected to extend across supply chains, industrials, energy, and a wide range of ancillary sectors positioned to support or benefit from this expansion. Importantly, the economic payoff from this investment cycle will unfold gradually. Many companies may rely on both public and private credit markets to fund capacity growth, creating selective opportunities for investors across the capital structure. In an environment where a small number of powerful themes can have an outsized influence on outcomes, thoughtful portfolio construction and disciplined positioning are increasingly important. We continue to actively monitor our recommended asset mixes and will make adjustments where we believe they can enhance diversification, manage risk, and improve long-term outcomes for our clients.#ZelosRidgeline #marketupdate #longterminvesting #wealthmanagement

In the month of November, the Zelos model portfolios were relatively flat, ranging from -0.1%* and 0.2%. We view this as positive given the S&P 500 and MSCI International World Price Indices were down ~0.3%. This brings year-to-date performance to approximately 6.7% to 10.3%* as of November 30, 2025. Overall, 2025 is shaping up to be a strong year as we approach having seven years of track record by February 2026. November marked a notable shift in market tone as investors began to look beyond inflation data and focus more directly on economic growth, fiscal policy, and geopolitical developments heading into 2026.Our structured products were the best-performing alternative asset class year to date, delivering approximately 25% as of November 30, 2025. Strong performance in the underlying equity reference indices resulted in several notes being called during the year. Proceeds from these maturities, along with new subscription capital, have been redeployed into newly issued notes focused on double-digit fixed returns or attractive annualized coupons. These strategies are primarily linked to reference indices in the energy sector, Canadian and U.S. banks, and diversified large-cap equities.Our real assets allocation continued to contribute meaningfully to portfolio returns, with year-to-date performance exceeding 8.0% as of November 30, 2025. Throughout the year, we remained focused on selective private real asset exposure, including multi-unit residential properties, storage facilities, farmland, and industrial real estate. We also trimmed our gold exposure during the period, taking profits following its strong performance throughout the year.Within our alternative equity allocation, we have been actively repositioning the portfolio following the return of capital and proceeds from a private equity investment. We have increased diversification by allocating to private equity secondaries, co direct investments, and music royalties. These changes have also broadened our manager exposure. While several of these positions involve multi year lockups and will take time to fully mature, we are optimistic about the long term positioning of the portfolio.Similarly, we have been active in further diversifying the risk and return drivers within our alternative credit allocation. Over the course of the year, we trimmed exposure to a credit spread–focused hedge funds and reallocated capital toward structured liquidity opportunities, as well as initiating a position in a senior secured private credit fund focused on floating-rate first-lien and unitranche loans. We believe these changes enhance diversification, reduce overall portfolio risk, and position the asset class for more attractive long-term returns.As we approach this time of year, we pause to reflect on and appreciate the tremendous support we have received from our long-standing and new clients, partners, and team members. Your trust and collaboration make what we do possible, and we are grateful to be in the unique position to serve you. We are genuinely excited about what lies ahead and wish you and your families a wonderful holiday season and a fantastic start to the new year.* Actual performance, net asset values are net of sub-advisory fees and other administrative costs but do not include Zelos management fees or client account custody fees.#PortfolioPerformance #AlternativeInvestments #StructuredProducts #WealthManagement #InvestmentStrategy

We are pleased to share the October 2025 edition of the Zelos Ridgeline. As always, you’ll find an update on the Zelos model portfolios and a summary of key market developments over the past month.Market Highlights & Model Portfolio UpdateOctober delivered steady results across the Zelos model portfolios, which returned between 0.5%* and 1.2%* for the month. This brings year-to-date performance to approximately 6.5%* to 10.4%*. Global equity markets continued to show resilience, supported by stable earnings expectations and clearer visibility on the path toward potential interest rate reductions in 2026. Fixed income remained range-bound as investors weighed moderating inflation data against cautious central bank guidance. We had some nice contribution from our emerging equities and alternative equities asset classes highlighting the benefit of diversification. In Canada, economic discussion through October remained focused on the rollout of major initiatives tied to the 2025 Federal Budget, including commitments to housing supply, productivity, and infrastructure investment. Of note, Alberta and the Federal government signed an MOU which paves the way for a new pipeline to the west coast and the expansion of an existing pipeline. Markets continue to assess how these measures may influence long-term growth and competitiveness. Market performance in 2025 has been driven largely by a small group of dominant U.S. technology names and strength in certain resource sectors, areas where we maintain intentional but measured exposure. This reflects our commitment to building portfolios that emphasize balance, durability, and long-term compounding rather than relying on concentrated market trends. Over the longer term, this disciplined approach has served clients well. Since inception, the Zelos model portfolios have produced strong, competitive returns while experiencing noticeably lower volatility and shallower periods of market decline than broad benchmarks. Managing risk thoughtfully while striving for consistent long-term results remains a central pillar of our investment philosophy.Thank you for your continued trust in Zelos Investment Counsel. * Actual performance, net asset values are net of sub-advisory fees and other administrative costs but do not include Zelos management fees or client account custody fees.

We are excited to bring you the September 2025 edition of the Zelos Ridgeline. We have included the usual overview of the Zelos model portfolios and market commentary but have also included a brief mention of the 2025 Canadian Federal Budget.Market Highlights & Model Portfolio UpdateSeptember was a strong month for the Zelos model portfolios, which gained between 1.5%* and just over 3%*, bringing year-to-date performance to roughly 6%* to over 9%*. The gains were supported by continued strength in global equity markets and positive contributions from our structured product allocations, which benefited from stable volatility and moderate interest rate expectations.From a broader market perspective, investor sentiment improved through September as inflation trends continued to moderate, prompting renewed optimism for potential rate cuts in early 2026. In Canada, the 2025 Federal Budget emphasized significant spending, about $280 billion over five years, focused on infrastructure, productivity and competitiveness, defense and security and affordable housing.While our managers have modestly lagged broad benchmarks this year, this is primarily due to a lower concentration in the “Magnificent Seven” U.S. technology stocks and more limited exposure to resource-based companies, both of which have led recent index performance. We view this as consistent with our disciplined approach to diversification and risk management.Importantly, since inception, the Zelos model portfolios have delivered comparable or superior returns to their respective benchmarks, while exhibiting significantly lower volatility and downside risk, as measured by standard deviation. This remains a cornerstone of our investment philosophy, to deliver strong, consistent returns with less risk over time.Thank you for your continued trust in Zelos Investment Counsel.* Actual performance, net asset values are net of sub-advisory fees and other administrative costs but do not include Zelos management fees or client account custody fees.#MarketUpdate #PortfolioPerformance #WealthManagement #CanadianInvesting #ZelosInvestmentCounsel

Zelos Investment Counsel partners with entrepreneurs to invest for the future and deliver tailored wealth management solutions for their clients. Whether you’re a financial advisor, accounting firm, or small business owner, you and your clients gain access to institutional-level investment opportunities, similar to those enjoyed by pension funds, endowments, and sovereign wealth funds.Finally, trust and clarity in wealth management.

Market Highlights & Model Portfolio UpdateIn August 2025, the Zelos model portfolios posted positive but more muted performance, rising between 0.7% and 0.8%* bringing year-to-date performance to 4.3% to 5.8%*. Structured Products was a stand out this month rising 3.9% on the back of a note being sold.Global equities posted solid gains with the S&P 500 Index advancing 1.3% and the MSCI International World Price Index up 1.8%. Inflation in the U.S. remained a focus, with the core Personal Consumption Expenditures index showing a 0.3% monthly uptick, pushing core inflation to ~2.9%. The Jackson Hole symposium in August added to the shift in tone, with Fed Chair Powell’s remarks interpreted by many as opening the door to rate cuts.We view a few areas of potential risk and consideration in the market including the possibility of inflation remaining sticky, and the Fed delaying cuts which could surprise markets. Additionally, much of the rally has been priced in, shown by elevated valuation multiples, markets could be vulnerable to adverse surprises.* Actual performance, net asset values are net of sub-advisory fees and other administrative costs but do not include Zelos management fees or client account custody fees.We are excited to announce the addition of Pamela Coquet, CFP, CEPA!Pam leads our business advisory division and has spent nearly two decades helping business owners navigate the intersection of personal wealth and business value. She works closely with clients to align their business, wealth, and future goal, ensuring everything moves forward in sync, especially when planning for a successful exit.Her passion for entrepreneurship began early, inspired by her father who owned a specialized transportation company. At just 11, she launched her first business painting, and by 20, she had co-founded and eventually sold another venture, gaining firsthand experience and hard-earned lessons along the way. Moving on, she worked as a marketing manager for a large national company, contributing to branding, TV, and radio campaigns for a national company, including navigating the challenges of a complex acquisition. Still seeking more, she returned to her entrepreneurial roots, launching her own firm focused on helping business owners with strategic planning and long-term success.Her passion extends beyond business as she embraces challenge and exploration in all areas of life. This spirit has taken her trekking the Annapurna Circuit in Nepal, kayaking in the waters of Thailand, volunteering to build homes in rural Mexico, and completing a triathlon through the mountains.Please join me in welcoming Pam to the team!#MarketUpdate #WealthManagement #TeamZelos #FinancialPlanning #EntrepreneurialAdvisors

When it comes to building investment portfolios, one of the biggest challenges is balancing personal goals with financial realities. A suitability assessment using weighted scores offers a structured and objective way to do just that.By evaluating clients across both personal factors (risk tolerance, investment horizon, values, preferences) and financial factors (income, net worth, liquidity needs, obligations), portfolios can be recommended in a systematic and unbiased manner.Consistency – Every client is evaluated through the same transparent framework, reducing subjectivity in recommendations.Personalization – Weighting factors ensures portfolios reflect what matters most to each client, not just their balance sheet.Clarity – Clients can clearly see how their circumstances and preferences lead to their recommended portfolio.Trust – A disciplined process demonstrates fairness and eliminates hidden biases.Scalability – The model supports advisors in efficiently serving many clients while maintaining high-quality advice.Ultimately, a weighted suitability assessment bridges the gap between science and personalization, ensuring clients receive investment strategies that are both appropriate and aligned with their long-term goals.#WealthManagement #FinancialPlanning #InvestorTrust #PortfolioStrategy #ClientFirst

In wealth management, pools are a powerful way to deliver operational efficiencies and improved client outcomes. By aggregating capital across multiple investors, pools allow firms to:Access high institutional minimums normally out of reach for individual investors.Provide mutual fund trust units that are eligible for registered accounts, broadening the range of investment options.Offer underlying exposure to sophisticated strategies and institutional-grade managers.Deliver monthly liquidity, balancing access to funds with long-term investment discipline and illiquid exposure like private equity and real estate.This structure creates efficiencies for advisors and clients alike, simplifying administration, improving access, and aligning with regulatory requirements while maintaining transparency.#WealthManagement #InvestmentPools #OperationalEfficiency #ClientSolutions #CapitalAggregation

In today’s wealth management landscape, model portfolios have evolved from a back-office efficiency tool to a core part of how advisors deliver value to clients. By leveraging institutional-level portfolio construction, model portfolios provide a consistent, disciplined approach to investing, while freeing up time for advisors to focus on what matters most: client relationships and planning.Key Benefits:Consistency & Discipline: Models reduce the temptation for ad-hoc portfolio changes and help maintain alignment with clients’ objectives.Efficiency: Advisors can scale their practices by managing fewer custom portfolios while maintaining a high level of personalization through overlays or customization options.Access to Institutional Expertise: Clients benefit from professional research, asset allocation, and risk management typically reserved for large institutions.Transparency & Oversight: Clear documentation of methodology and risk metrics enhances compliance and client trust.Regular Rebalancing: Implementing quarterly rebalancing ensures portfolios stay aligned with target asset allocations, while monthly smoothing techniques help reduce the impact of market volatility on client experience.Dynamic Asset Allocation: There are opportunities for tactical adjustments to reflect market conditions and forward looking risk/return assumptions.When implemented thoughtfully, model portfolios are more than just efficiency tools, they’re an integral framework for delivering a disciplined investment experience and deepening client trust.#WealthManagement #ModelPortfolios #FinancialPlanning #ClientExperience #InvestmentStrategy

It’s a great time to be independent in Canada’s wealth management landscape. Here’s why:Clients want real choice & transparency. More Canadians are seeking fiduciary-style advice and best-in-class solutions rather than proprietary products.Technology and new products have leveled the playing field. Custodians and fintech platforms now give independents bank-level infrastructure, digital onboarding, and seamless client portals. New products with client friendly features such as evergreen structures provide greater diversification and exposure with liquidity not previously available.Advisor ownership is rising. Independence means equity in your own business, control over culture, and opportunities to acquire books of business as demographics shift.The momentum is clear, independents are better positioned than ever to deliver the personalized service and flexibility clients are looking for.#WealthManagement #IndependentAdvisors #ClientFirst #FinancialPlanning #CanadianFinance

In a world of rising living costs and market volatility, private real estate offers a compelling foundation for long-term wealth building. Here are three reasons why we continue to view it as a core holding for many investors:1. Inflation HedgePrivate real estate has intrinsic, tangible value. As the cost of goods and services rises, so too does the replacement cost of real assets like buildings and land. Rental income often adjusts upward with inflation, preserving purchasing power over time.2. Reliable IncomeUnlike stocks with variable dividends, stabilized real estate assets generate consistent monthly cash flows. Whether through multifamily housing, industrial, or medical offices, this income can provide downside protection in volatile markets.3. Smart Use of LeverageReal estate is one of the few asset classes where prudent borrowing enhances returns without taking on excessive risk. Long-term, fixed-rate debt can amplify equity growth—especially when income covers financing costs and leaves room for reinvestment.At Zelos, we integrate private real estate into portfolios not for speculation, but for durable wealth creation.#PrivateRealEstate #AlternativeInvesting #InflationHedge #PassiveIncome #ZelosInvestmentCounsel

At Zelos Investment Counsel, our culture is anchored in the belief that true partnerships create extraordinary outcomes.We are building Canada’s premier independent wealth management boutique, a place where partners have both the autonomy to act and a meaningful voice at the table. This isn’t just about managing portfolios; it’s about shaping the future of our firm together.Our model empowers collaboration without bureaucracy, ensuring that every partner’s expertise, insights, and entrepreneurial drive directly influence our direction. When decisions are made collectively, with aligned values and mutual respect, we create an environment where innovation thrives and client outcomes are elevated.In a landscape dominated by large institutions, Zelos stands apart by fostering a culture where independence is celebrated, contributions are valued, and partnerships are built to last.#IndependentByDesign #PartnershipCulture #PremierWealthManagement #VoiceAtTheTable #ZelosWay