Zelos Soundbites

Zelos Investment Counsel
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Zelos Soundbites delivers quick, engaging insights from Zelos Investment Counsel, covering everything from understanding asset classes to navigating key considerations for advisors. Whether you’re an investor looking to grow and protect your wealth, or a strategic partner seeking a trusted platform to serve clients, these bite-sized episodes share practical knowledge, industry perspectives, and reasons why working with Zelos can help you achieve more.

  1. May 15

    15. March 2026 Zelos Ridgeline

    March was a broadly negative month, with all four indices we track, the S&P/TSX Composite, S&P 500, MSCI World, and Canadian bonds, finishing in negative territory.The driver was less about any single data point and more about a change in market narrative.Following a period where markets were increasingly confident in moderating inflation and eventual interest rate cuts, March introduced a new variable: a sharp rise in energy prices tied to escalating geopolitical tensions. This led to a reassessment of inflation expectations and, in turn, central bank policy paths, creating a more cautious environment across asset classes.Markets responded accordingly, equities declined, bonds also faced pressure as yields adjusted, and volatility increased across regions. In short, it was a reminder that markets can reprice quickly when assumptions change. March is exactly the type of environment our portfolios are built to navigate. While periods like this can be uncomfortable in the short term, they reinforce a key principle: consistency over time is often a function of how portfolios behave in difficult markets, not just strong ones.Across our model portfolios, the focus remains on:- Reducing downside participation during market stress- Maintaining participation during recoveries- Producing a more consistent return experience over full cyclesThis approach has historically resulted in lower downside capture relative to upside capture, contributing to stronger risk-adjusted outcomes over time.Since inception, our model portfolios have demonstrated a narrower return range and meaningfully lower volatility, with standard deviation approximately 2.0% to 2.3% below their benchmarks, depending on the mandate.Importantly, consistency is not accidental, it is the result of disciplined portfolio construction, diversification across asset classes (including alternatives), and careful manager selection. I had the opportunity to spend a couple of days in Toronto recently, meeting with several of our long-standing portfolio managers. These sessions are always valuable, not just for reviewing performance, but for understanding how managers are thinking about markets, risk, and opportunity in real time. What stood out most was not a shift in strategy, but the opposite: a continued focus on disciplined execution and long-term thinking.

    3 min

  2. May 15

    14. February 2026 Zelos Ridgeline

    Seven Years in the Market: A Full‑Cycle Perspective February marks an important milestone for Zelos, seven years of live performance across our pools and model portfolios. Over 7 years, Zelos model portfolios have returned between 6.4% to 8.9%. This track record has now spanned several distinctly different environments, including: The COVID‑19 market dislocation, The 2022 inflation‑driven drawdown, The post‑pandemic recovery, and the more recent period of concentrated equity leadership and macro volatility. Through each phase, our focus has remained consistent: protect capital in drawdowns, compound steadily over time, and avoid reliance on any single regime or market narrative. We believe this full‑cycle experience matters, particularly at a time when headline returns can mask underlying risk.

    4 min

  3. May 15

    13. January 2026 Zelos Ridgeline

    A New Year Begins with Uncertainty   The start of 2026 has reminded investors that markets rarely move in straight lines. January was shaped by a mix of geopolitical developments, shifting expectations around artificial intelligence, and ongoing adjustments in global interest rate expectations.   One of the most widely discussed developments was the escalation of tensions involving Iran in the Middle East. While geopolitical events often create short-term volatility, energy markets tend to respond quickly given the region’s importance to global oil supply.   West Texas Intermediate (WTI) futures spiked over ~US$100/barrel intraday in early March, a move of over 65% from late February levels, as investors assessed risks around the Strait of Hormuz, a corridor that handles ~20% of global petroleum liquids. This type of move tends to tighten financial conditions and revive inflation concerns.   For investors, the ripple effects are broad. Higher oil prices can influence inflation expectations, which in turn affects central bank policy, bond yields, and equity valuations. For Canada, the dynamic is somewhat unique as the energy sector represents a meaningful portion of the domestic equity market, providing a degree of offset relative to other global markets when energy prices rise. Other nations benefiting would include countries like Norway and Russia. Notably, if high oil prices persist, Russia will have enhanced financial capability to continue to fund the war in Ukraine.    The month also highlighted a shift occurring within technology markets. Over the past several years, enthusiasm around artificial intelligence has driven substantial capital investment across semiconductors, cloud infrastructure, and enterprise software. Recently, however, some software-as-a-service companies have experienced notable pullbacks as investors reassess valuation levels, pricing power, margins, and potential business model transitions.   Despite uneven leadership across global markets, the Zelos model portfolios continued to produce steady results over the past year. As at January 31, 2026, one-year returns ranged from approximately 6.1% to 7.1% depending on the mandate.   While the absolute level of returns is important, we believe the consistency and risk profile of these portfolios is equally meaningful. Since inception in early 2019, the portfolios have delivered competitive long-term returns while maintaining lower volatility than many broad equity benchmarks. Zelos Model Portfolio Update Despite uneven leadership across global markets, the Zelos model portfolios continued to produce steady results over the past year. As at January 31, 2026, one-year returns ranged from approximately 6.1% to 7.1% depending on the mandate.   While the absolute level of returns is important, we believe the consistency and risk profile of these portfolios is equally meaningful. Since inception in early 2019, the portfolios have delivered competitive long-term returns while maintaining lower volatility than many broad equity benchmarks.

    5 min

  4. Jan 28

    12. December 2025 Zelos Ridgeline

    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

    4 min

  5. 12/24/2025

    11. November 2025 Zelos Ridgeline

    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

    4 min

  6. 12/08/2025

    10. October 2025 Zelos Ridgeline

    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 Update October 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.

    2 min

  7. 12/01/2025

    9. September 2025 Zelos Ridgeline

    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 Update September 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

    2 min

  8. 11/24/2025

    8. Trust and Clarity in Wealth Management

    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.

    1 min
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About

Zelos Soundbites delivers quick, engaging insights from Zelos Investment Counsel, covering everything from understanding asset classes to navigating key considerations for advisors. Whether you’re an investor looking to grow and protect your wealth, or a strategic partner seeking a trusted platform to serve clients, these bite-sized episodes share practical knowledge, industry perspectives, and reasons why working with Zelos can help you achieve more.

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  • Creator
    Zelos Investment Counsel
  • Years Active
    2025 - 2026
  • Episodes
    15
  • Rating
    Clean
  • Copyright
    © Zelos Investment Counsel
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    Zelos Soundbites