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. Sep 21

    18. May 2026 Zelos Ridgeline

    Year-to-date as at May 31, 2026, the Zelos model portfolios have delivered between 2.3% to 4.0% return, compared to their benchmarks ranging 3.1% 7.9%.Year-to-date as at May 31, 2026, major equity benchmarks rose strongly, MSCI International +10.4%, S&P 500 +11.8% and the S&P/TSX +10.6%, while the Developed Market Equities class returned +5.3%. The sleeve participated in rising markets but captured only about half the move, and that gap accounts for most of the difference versus the benchmarks.Much of 2026’s year-to-date equity strength has been concentrated in more speculative, shorter-term areas of the market, notably materials, commodities, and AI-related themes. The portfolio’s managers are positioned with a longer-term orientation and measured exposure to these areas, which contributed to the period’s relative shortfall.Traditional portfolio construction often relies on asset class silos. Rigid silos can lead to a fragmented approach that neglects the interconnected nature of today's markets. The Total Portfolio approach start with portfolio objectives in mind. Investments can be evaluated based on their contribution to overall goals. When we set out to create the Zelos model portfolios, we wanted to create an institutional quality offering for individuals and families which was diversified, offered attractive risk adjusted returns, provided liquidity while exposure to close-ended funds, and created the investor experience of a smoother glide-path as compared to the typical public-market portfolio.Periods of concentrated equity strength are precisely when a broadly diversified, long-horizon strategy is expected to lag, and precisely when its downside protection is held in reserve. As an example, the Balanced Portfolio has historically captured upside of 79%, and downside of 59%, against a target of 80% and 60%, respectively. Over full market cycles, this asymmetry is the foundation of durable, risk-managed compounding.The Zelos model portfolios have delivered 6.3% to 9.1% compounded annual returns for over 7 years with standard deviation 2.1% to 2.8% lower than their benchmarks. We believe these metrics are attractive for the wealth accumulation and protection that our clients have come to expect from us.

  2. Sep 14

    17. Advisor Incorporation, Not Anytime Soon

    Advisors keep asking me the same question.“When can I finally incorporate?”I get it. The tax advantages are real. Mutual fund reps have had a version of this for years. Securities licensed advisors have been waiting for the rules to catch up.Here’s the truth nobody wants to hear: it’s not coming soon.CIRO put advisor incorporation back on its priority list this year. Sounds promising, until you realize “finalizing a proposal” is years away from “this is now law.” They’re still waiting on tax feedback from the CRA. The CRA says it’s not really their file. One industry leader called it a hot potato. Add provincial securities legislation changes on top of that, and you’re not looking at a quarter. You’re looking at years.So if someone tells you 2026 or 2027 for full advisor incorporation, take it with a grain of salt.Here’s what I keep coming back to. Waiting on a regulator is not a strategy. It’s a delay tactic dressed up as patience.At Zelos, we built a Investment Counsel Portfolio Manager (ICPM) model where advisors get real autonomy and true ownership today. Not someday. Today.Book a no obligation meeting: https://outlook.office.com/bookwithme/user/fbe953212ed743bf9e72741a2d9d538f@zelosglobal.com?anonymous&ismsaljsauthenabled&ep=plink

  3. Sep 7

    16. April 2026 Zelos Ridgeline

    April marked a meaningful reversal from March. Global equity markets rebounded strongly, led once again by large-cap technology names. In many cases, this move erased most, if not all, of the prior month’s pullback.On the surface, this looks constructive. Underneath, however, the structure of the rally tells a more nuanced story.Market leadership, which had begun to broaden earlier in the year, has narrowed once again. The top 10 constituents in the S&P 500 now represent over 38% of the index, a level of concentration that continues to climb. While these companies are undeniably high quality, this degree of dominance introduces a different type of risk: outcomes increasingly tied to a small group of names.For investors, this raises an important question: What are you really exposed to when you own “the market”?In this environment, the Zelos model portfolios delivered positive results across all mandates, returning approximately 1.1% to 3.8% in April.While it is easy to anchor on headline index returns, we believe context matters:Equity markets were strong, but leadership was concentratedFixed income remained relatively subduedAlternative asset classes continued to provide differentiated return streamsThe portfolios participated in the recovery, while maintaining a balanced exposure across multiple return drivers. We recognize that this approach is not for everyone.There will always be strategies that outperform in environments where a single factor, sector, or group of stocks dominates returns. But those same environments often carry hidden risks that only become visible over time.For investors who value:Active managementA risk-aware approachInstitutional-style diversificationThere tends to be strong alignment with how we think about capital.

  4. 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.

  5. 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.

  6. 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.

  7. 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

  8. 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

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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.

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  • Creator
    Zelos Investment Counsel
  • Years Active
    2025 - 2026
  • Episodes
    18
  • Rating
    Clean
  • Copyright
    © Zelos Investment Counsel
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    Zelos Soundbites