Q2 2026 Market and Performance Update

In WealthCo’s Q3 2026 Market and Performance Update, Dave Makarchuk, Chief Investment Officer, and Claude Spencer, VP, Advisory Services & Portoflio Manager, review a quarter in which equity markets kept climbing despite rising interest rates, persistent U.S. inflation, and ongoing uncertainty in the Middle East. Dave reaffirms the principles that have guided WealthCo’s pools since they were established in 2014: downside protection, institutional pension-style diversification with roughly half of assets in alternative investments, and a steady, long-term approach. Because almost every client has a financial plan, he stresses that avoiding large losses is central to keeping those plans on track.

Dave reports a rewarding year for growth-oriented investments. Core equities and alternative growth both delivered strong gains, supported by technology and AI infrastructure, along with diversified results across private equity and infrastructure. Income holdings have been more challenged. Rising rates, especially in the mid-to-long end of the yield curve, have weighed on fixed income and alternative income. Dave does not see this as a reason to move from income into growth. He believes the income side now offers better value, and because most alternative income investments are floating rate, their distributions rise as rates rise. Overall, diversified portfolios remain broadly on track with long-term expectations for 2026. With more clients now in the Growth portfolio than in Balanced, WealthCo is reporting on both.

A key focus of the presentation is the early progress of WealthCo’s refreshed equity lineup. Following the manager change in May, Schroders performed well in its first months and finished close to benchmark in September. The combined lineup outperformed in September and into early October, led by T. Rowe Price’s technology positioning. Dave explains that Schroders deliberately sits between T. Rowe Price’s growth conviction and MFS’s discipline on quality and valuation, balancing growth with resilience.

The presentation also places today’s market in a longer context. Drawing on Schroders research, Dave notes that the current bull market, which began in 2009, is the second longest of the past century, and that every previous run has eventually ended, sometimes sharply. No one can predict the timing, and WealthCo has chosen to stay cautiously positioned, even if that proves early. He also highlights that AI returns have been uneven: semiconductor and infrastructure companies have surged while many software names have struggled. That makes careful stock selection more important than broad exposure to the theme.

Looking ahead to Q4, Dave is watching four themes: rising rates and U.S. inflation, developments in the Middle East and oil prices, the U.S. midterm elections, and AI-related earnings and borrowing as large technology companies finance data centre growth. He compares WealthCo’s current stance to driving with caution, with no foot on the brake but no extra pressure on the gas. Portfolios remain fully invested and focused on downside protection, and he is optimistic about a solid finish to 2026. He encourages clients who are considering a more aggressive or more conservative allocation to speak with their portfolio manager.