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Introduction
Hello everyone,
Summer was busy, and fall is off to a flying start. To say that we’re not idle these days would be an understatement. But as we all know in business, it’s always better to be in demand than not enough!
First, I’d like to look back on several interesting events that took place over the past few weeks. To begin with, I had the privilege of giving a presentation in front of about 300 financial advisors from MICA during their fall meeting. Needless to say, the performance of our portfolios continues to enhance Rivemont’s visibility within Quebec’s financial sphere. I also had the opportunity to be a guest speaker at the Forum Investir organized by Les Affaires newspaper at the end of October. I’ll return later in this bulletin to the main messages I shared at these events.
As of September 30, the gross return of the “equity” portion of our portfolios stood at approximately 21 percent, in line with the indices, despite our limited exposure to large U.S. technology stocks — which, in our view, are becoming increasingly risky.
We also held internal strategic discussions regarding Rivemont’s operations and came to the following conclusions:
- Advisory services are taking on a growing role in our daily activities due to our clientele’s increasing sophistication.
- Thanks to our investment approach, we stand out from competitors in terms of both returns and risk management.
- We must continue to raise our profile to become the preferred choice for entrepreneurs and high–net-worth families.
Over the coming years, you’ll observe an evolution in our practices. In the medium term, our goal is to assign a financial planner to each client, thereby separating advisory functions from portfolio construction and management. In our opinion, this would be the best of both worlds for our investors.
On that note, you’ll find in this bulletin the first article written by Julien-Carl Landry, who now heads our financial planning department.
As usual, we’ll conclude with our market outlook and a look at our most significant positions.
Enjoy your reading!
An optimal portofolio
The presentation we gave this fall was titled: “Thinking Outside the Box to Build a Better-Performing Portfolio.”
Current Market Conditions:
- Stock market prices are at all-time highs.
- Commodity prices are at all-time highs.
- Cryptocurrency asset prices are at all-time highs.
- Real estate prices are at all-time highs.
- Grocery basket prices are at all-time highs.
Well, you get the idea… But what explains this situation? Despite the news we hear? Despite the “Trump effect”?
In our view, this environment is the result of governments running record deficits and printing unlimited amounts of new money, while central banks continue to lower rates regardless.
Our ideal portfolio positioning is therefore as follows:
- “As long as the music is playing, you’ve got to get up and dance!” (Chuck Prince, Citigroup, July 2007).
- Be fully exposed to traditional asset classes.
- Take advantage of market exaggerations (quantum, lithium, nuclear, etc.).
- Allocate a meaningful portion to assets uncorrelated to the U.S. dollar, such as gold, commodities, cryptocurrencies, and real assets.
- Use alternative absolute–return products.
- And finally, keep an eye on the exit door…
It’s always important to remember that, unlike most investment firms, we’re not afraid to step back from being fully invested at all times, and our approach prioritizes capital protection.
Financial planning section
By Julien-Carl Landry
The Quebec Pension Plan (QPP) and Old Age Security (OAS)
When preparing for retirement, it’s essential to properly forecast expenses and assess all sources of income that will help achieve your goals. Among these, two public programs play a major role: the Quebec Pension Plan (QPP) and Old Age Security (OAS). These programs may seem simple at first glance, but the age at which you choose to start receiving benefits can have a significant impact on your long-term financial and tax situation.
The Quebec Pension Plan (QPP)
The QPP is the result of your working years. Each time you contribute, you build a future right to a pension that will replace a portion of your employment income after retirement. In 2025, the maximum pension at age 65 is $1,433 per month for someone who earned the maximum pensionable earnings throughout their career.
However, this pension is not fixed — it varies depending on when you apply:
- If you apply at age 60, it’s reduced by about 36 percent, to roughly $917 per month.
- If you wait until 70, it increases by about 42 percent, reaching around $2,035.
- And at 72, the maximum climbs to nearly $2,275 per month.
In other words, postponing your QPP payments results in a substantial lifetime increase — often compared to a guaranteed annual return of 7 to 8 percent, net of tax and without risk.
Old Age Security (OAS)
OAS works differently: it doesn’t depend on contributions but rather on years of residence in Canada. To be eligible, you must have lived in the country for at least 10 years after age 18. The maximum benefit at age 65 is about $713 per month in 2025, indexed quarterly to inflation. As with the QPP, it’s possible to defer OAS until age 70, with a 0.6% increase per month of delay (or 7.2% per year).
However, there’s a catch: high income can reduce the benefit. Starting at an individual income above $93,454, a gradual clawback applies until the OAS amount is fully eliminated.
The Importance of Timing
Choosing when to begin receiving QPP and OAS is a strategic decision.Taking these benefits earlier provides immediate income, which can be helpful if you stop working young or have few other income sources. However, waiting a few years can be more advantageous for those in good health, with longer life expectancy, or with sufficient financial reserves.
The ideal timing depends on several factors:
- Your life expectancy and health.
- Your short-term liquidity needs.
- Your investment strategies and tax rate.
- And even your spouse’s situation, since they could benefit from a survivor’s pension.
Each case is unique. That’s why a personalized analysis often helps optimize after-tax income and maximize retirement wealth sustainability.
Market Prospects
Favorite Securities
You will find below a list of the individual securities with the largest weight in our portfolios. These stocks were selected based on their respective potential to outperform the market. You will find a short description of their activities, the annual dividend, if any, and the total return since their first inclusion in our portfolio.
Conclusion
I couldn’t end this financial letter without mentioning the Rivemont Long Short Fund. It achieved a 20 percent return in September, making it one of the top-performing alternative funds in Quebec this year. We’re pleased to see that the changes we implemented, as well as Jeffrey Veilleux’s integration into the management team, are paying off. We won’t declare victory too soon, but there’s no doubt things are moving in the right direction.
Thank you all for your trust,
Martin Lalonde, MBA, CFA
President
