Dear Friends & Partners,

April was a month of two halves. The first week carried the weight of March with markets still absorbing the Iran conflict, oil above $100, and investor confidence shaken. Then on April 8th, President Trump announced a ceasefire with Iran. Markets surged. The S&P 500 gained nearly 10% for the month. The NASDAQ climbed 14%. It was one of the strongest single-month rallies in years, driven by a wave of relief and a sharp rotation back into the technology and growth names that had been punished through the first quarter.

But here is what matters more than the headline numbers: the ceasefire has not held cleanly. Iran re-imposed shipping restrictions on the Strait of Hormuz later in the month. Oil pushed back to $126 a barrel by month-end. The situation remains unresolved, and the underlying risks to energy disruption, defense spending, global supply chain stress have not gone away. They have simply been joined by a renewed appetite for the businesses building the future.

This month, I want to focus on where the real returns are being made in 2026, because the answer may surprise you. It is not the names that make the front pages. It is the infrastructure behind them.

The Physical Layer of AI: Where the Real Money Is Being Made

When most people think about artificial intelligence, they think about the companies whose names they know like Nvidia, Microsoft, Meta, Alphabet. These are important businesses, and they remain core holdings in this portfolio. But the standout performers in 2026 are not the headline names. They are the companies building the physical infrastructure that makes AI possible.

Consider what is happening inside our portfolios right now.

Teradyne (TER), which manufactures the precision testing equipment that every AI chip must pass through before it ships, is up over 85% year-to-date. AI-related revenue now accounts for more than 60% of the company’s total, and that share is still growing.

Vertiv (VRT), which builds the thermal management and liquid cooling systems that keep AI data centres running, is up over 73% year-to-date. Orders surged 252% in Q4 2025, and the backlog now exceeds $15 billion. JPMorgan and Morgan Stanley both raised their price targets to $350 in April.

Eaton (ETN), which manufactures the electrical distribution and power management systems that connect data centres to the grid, hit an all-time high above $424 in April, up over 18% year-to-date.

And in Canada, Hammond Power Solutions (HPS.A) reached an all-time high of $280 in April. Hammond manufactures the dry-type transformers that are essential to every data centre, every EV charging station, and every grid expansion project in North America. The stock has gained approximately 179% over the past year. This is an AI infrastructure story hiding in the Canadian portfolio and it is one of the best-performing holdings across either model this year.

The pattern is clear. The companies physically enabling AI such as the testing, the cooling, the power distribution, the transformers are generating the strongest returns. This is not momentum chasing. These businesses were in the portfolio because we understood, early, that AI is ultimately a power and infrastructure story. The market is now confirming that thesis.

Market Overview: April in Review

April’s numbers reflect the ceasefire rally and a sharp rebound from March’s sell-off. U.S. markets led decisively, with tech driving the recovery. The TSX participated more modestly, as energy names gave back some ground on ceasefire hopes before recovering as the situation deteriorated again.

Figure 1: April 2026 — Index Performance

The Bank of Canada held its policy rate at 2.25%, maintaining a wait and see approach given the U.S.-Iran uncertainty. Canadian banks traded near the flatline. The real story in Canada this month was stock-specific to Hammond Power, Celestica, and the energy names which each had their own distinct narratives.

Portfolio Focus: The Winners Across Both Models

This is a month where I want to step back and show you the full picture with the top performers across both the U.S. and Canadian portfolios year-to-date. The diversity of these winners is the point. This portfolio is not dependent on one theme or one geography.

 Celestica deserves a specific note. The company reported Q1 revenue of $4.05 billion — up 53% year-over-year — and raised its full-year 2026 outlook while introducing a 2027 revenue floor of $25.5 billion. Despite that, the stock fell 16% on the announcement. This is a pattern we have seen before: a market so focused on short-term sentiment that it sells a company reporting exceptional results. Our view has not changed. Celestica is a core Canadian technology holding and one of the most direct beneficiaries of AI hardware demand globally.

The Broader Picture

Energy — Still in Play

The ceasefire did not resolve the Strait of Hormuz situation. Oil remains well above pre-conflict levels. Canadian Natural Resources, Enbridge, TC Energy, Pembina, and Tourmaline continue to benefit from a world where secure, North American energy supply carries a premium. The Bank of Canada’s decision to hold rates also supports the income characteristics of these holdings.

Defense — A Pause, Not an Exit

Lockheed Martin pulled back from its March high of $676 to around $510 as ceasefire hopes rose. RTX and BWX Technologies followed a similar pattern. This is normal after a sharp geopolitical-driven rally. The underlying thesis sustained defense spending under a U.S. administration prioritizing military readiness has not changed. The pullback reflects the market digesting the ceasefire, not a change in the demand environment.

AI Platforms — The Rebound

Nvidia, Meta, Alphabet, and Amazon led the NASDAQ’s 14% April rally. These businesses remain the intelligence layer of the AI transformation. The first-quarter pullback created opportunity, and the April rebound reflects the market recognizing that the capital expenditure cycle driving AI is not slowing — it is accelerating. Microsoft remains under pressure year-to-date, but its position as the enterprise AI platform is not in question.

Power — The Constraint That Will Not Go Away

Constellation Energy, NextEra, and Vistra continue to perform. Vistra is up nearly 30% year-to-date. The AI buildout requires more electricity than the current grid was designed to deliver, and these are the companies contracted to fill that gap. This theme is durable, not cyclical.

Fidelity Global Innovators — The Private Market Access

The Fidelity Global Innovators position added last month provides exposure to high-quality private companies including Anthropic and SpaceX. These are businesses that are not yet available through public markets and are shaping the next generation of AI and space infrastructure. No changes were made to this position in April. It remains a meaningful complement to the public market holdings.

May Planning Focus: Time for a Mid-Year Portfolio Review

We are nearly halfway through 2026, and this has already been one of the more eventful years in recent memory. A military conflict, an oil shock, a sharp market sell-off, and an equally sharp recovery — all in the span of eight weeks.

This is exactly the right time for a mid-year portfolio review. Not because something needs to change — but because the best time to confirm your plan is working is when markets are giving you real-world data to measure it against.

Here is what a mid-year check-in covers:

Your asset mix — does your balance between Canadian and U.S., between growth and income, still reflect your goals and your risk tolerance?

Your income needs — are the dividends and distributions from the portfolio tracking where they should be for the year?

Your broader plan — insurance, estate structures, tax efficiency, retirement projections. The spring months are ideal for a conversation with our financial planner before summer. Let us know and we will coordinate that introduction.

I am always available to discuss further. One conversation. No pressure. Just making sure the plan is doing what it was built to do.

Closing Thoughts

The story of 2026 so far is not about the headlines, it is about the infrastructure. The companies physically enabling artificial intelligence, the testers, the cooling systems, the transformers, the power plants are generating the strongest returns in both portfolios. That is not coincidence. It is the result of a plan that understood, early, that AI is ultimately a power and infrastructure story.

The geopolitical picture remains uncertain. The ceasefire is fragile. Oil prices are elevated. But through all of it, the portfolio has performed across multiple pillars such as energy, defense, AI infrastructure, power, and the Canadian anchor. That breadth is by design.

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.