Friends & Partners,

March was a difficult month for markets. Every major index fell. The S&P 500 declined 5.3% its worst monthly performance since 2022. The Nasdaq dropped 5.1%. The Dow fell 3.4%. The TSX declined 4.6%. A sharp two-day rally on March 30–31, fueled by ceasefire reports in the Iran conflict, pulled markets off their worst levels. But for most of the month, the wall of worry was doing exactly what it does: pressing down on prices and shaking out anyone who was not prepared.

On February 28^th , U.S. and Israeli forces launched strikes against Iran. Within days, Iran retaliated by effectively closing the Strait of Hormuz the passage through which roughly one-fifth of the world’s seaborne oil flows. Brent crude surged past $100 a barrel for the first time in four years, peaking near $126. The IEA called it the largest supply disruption in the history of the global oil market.

And yet the portfolio was already built for this. The defense positions, the energy holdings, the nuclear thesis all of it was in place before the first headline. This month is a reminder of why the plan is built the way it is, and why patience, not reaction, is where durable wealth is made.

The Strait of Hormuz: What It Means for the Portfolio

The closure of Hormuz is not theoretical. It is a live disruption removing close to 20% of global seaborne oil from the market. If the strait is not reopened by mid-April, analysts expect conditions to worsen materially. Europe and Asia, both heavily dependent on Gulf shipments, are already absorbing the pressure.

For this portfolio, two things matter. First, the Canadian energy holdings Canadian Natural Resources, Enbridge, TC Energy, Pembina, and Tourmaline are not exposed to the Gulf. They produce, process, and transport energy entirely within North America. When global supply comes into question, Canadian energy becomes more strategically valuable, not less. The TSX index fell in March because bank stocks dragged it lower. The energy businesses inside the portfolio did not follow.

Second, Lockheed Martin, RTX, BWX Technologies, and Cameco were in this portfolio before the first strike. Lockheed Martin is up roughly 21% year-to-date. RTX is up nearly 12%. BWX Technologies is up approximately 13%. These were not reactive trades. They were convictions already in the plan.

Market Overview: March in Review

Every major index finished March in the red. The selling was broad-based, driven by geopolitical tension, rising energy prices, and continued repricing of tech valuations. The market did not discriminate by geography, Canadian and U.S. indices both declined.

Lockheed Martin (LMT)

Up roughly 21% year-to-date, closing March at $604. The F-35 program, THAAD missile defense systems, and precision munitions are all directly engaged in the current conflict. Lockheed set a record $194 billion backlog in Q4 2025, with production capacity for interceptors expanding significantly. This was a conviction position long before March.

RTX Corporation (RTX)

Up nearly 12% year-to-date. RTX hit an all-time closing high of $212 on March 2^nd before pulling back to $19, still a strong performer and a core defense anchor. The Raytheon Missiles and Defense division is directly relevant to the current conflict environment.

Canadian Natural Resources (CNQ)

CNQ continues to demonstrate why it belongs at the centre of the Canadian energy position. Record 2025 results, annual production of over 1.57 million BOE/day, adjusted net earnings of $7.4 billion, and a 6.4% dividend increase payable April 7^th. At a breakeven near US$40 and oil above $100, this business is generating exceptional cash flow. Twenty-seven consecutive years of dividend growth.

Cameco (CCJ / CCO)

Cameco pulled back roughly 9% in March, trading near US$104 on the NYSE, well below its January all-time high near US$134. The pullback is market-driven, not thesis-driven. Cameco connects the two most durable energy themes in this portfolio: nuclear power as AI’s baseload energy solution, and uranium as a geopolitical energy security asset. This position sits in both the Canadian and U.S. portfolios for exactly that reason. Pullbacks in conviction positions are not reasons to exit. They are reasons to reassess. Our conviction has not changed.

The Broader Picture

Defense: Validated, Not Chased

Lockheed Martin, RTX, and BWX Technologies were in this portfolio before the first strike. The thesis was never about predicting a specific conflict. It was about recognizing that a U.S. administration prioritizing military readiness and domestic production creates sustained demand for durable defense businesses. March validated the thesis.

Energy: The Canadian Advantage

With Hormuz closed, Canada’s energy sector, pipeline infrastructure, natural gas processing, oil sands production is among the most strategically valuable energy assets in the world right now. Enbridge, TC Energy, Pembina, and Tourmaline are not speculative. They are essential infrastructure. The TSX fell in March. These businesses did not.

Power: AI’s Bottleneck Is Unchanged

Constellation Energy, NextEra, and Vistra remain positioned at the centre of the clean energy transition and AI infrastructure buildout. Constellation’s $16.4 billion acquisition of Calpine in January solidified its lead in contracted nuclear and gas-fired power for data centres. Data centres still need 24/7 baseload power. The companies supplying it are not interchangeable.

A Portfolio Adjustment Worth Noting

This month we trimmed a portion of our Canadian bank holdings and added to the Fidelity Global Innovators fund. The fund provides access to high-quality private companies including Anthropic and SpaceX that are not available through public markets. These businesses are shaping the next generation of AI and space infrastructure. The Canadian banks remain a core anchor. This was a trim, not a departure — a reallocation toward where the next decade is being built.

April Planning Focus: Tax Season Complete. Time for a Check-In

With tax season wrapping up, now is the right time to make sure nothing has fallen through the cracks — and to look ahead.

If your accountant has not yet been registered for the RBC Trusted Partner Portal, one message to us is all it takes. We handle the rest. Your accountant gets direct, secure access to all T3s, T5s, and monthly statements, no unsecured emails, no phone calls.

And now is an excellent time to connect with our financial planner for a mid-year check-in. Whether it is reviewing your overall plan, insurance coverage, estate structures, or retirement income projections, the spring months are ideal. Let us know and we will coordinate the introduction.

Closing Thoughts

Markets have always climbed the wall of worry. Not in straight lines. Not without discomfort. But through difficulty, uncertainty, and headlines that feel permanent, durable businesses compound. That is not a theory. It is the history of every market cycle.

March built the wall higher. The portfolio was built to climb it.

As always, if any of this raises questions about your specific accounts or your broader plan, please do not hesitate to reach out.

That conversation is always welcome, and it is always about you first