In this Q3 2024 Tall Oak Capital Advisor Client Report, we highlight the capital gains changes in relation to life insurance, discuss market highlights, review of Vistra Corp and Digital Reality security highlights, and overall portfolio positioning.
At a glance:
Market Review
- Overview of easing inflation and supportive monetary policies.
- Rate cuts across global central banks, including the Bank of Canada.
- Strong performances in U.S. and emerging markets; modest gains in Canada.
- Sector highlights: Information technology, energy, and materials.
Wealth Advisory Highlight
- The importance of life insurance increases due to changes in the capital gains tax.
- Strategies for mitigating higher tax burdens, especially for estates and family businesses.
- Life insurance as a tool for estate liquidity, tax-sheltered growth, and asset protection.
Investment Theme: Powering AI & Data Center Growth
- Focus on AI’s demand for data centers and infrastructure.
- Opportunities in green energy, semiconductors, and advanced cooling technologies.
- Key companies like Vistra Corp and Digital Realty positioned to benefit from data growth and sustainability.
Security Highlights
- Vistra Corp: Leading in energy transformation with renewable projects and a net-zero emissions goal.
- Digital Realty: Major player in data centers with a focus on sustainability, aiming for carbon neutrality by 2030.
Tall Oak Capital Appreciation Pool
- Objective: Long-term capital appreciation through diversified investments in Canadian and global markets.
- Strategy: Combining quantitative and fundamental approaches to identify high-quality, growth-oriented companies.
Tall Oak Diversified Income Pool
- Objective: Generating predictable income through high-quality fixed-income and dividend-paying equities.
- Strategy: Focused on capital preservation, diversification, and risk management.
The views expressed in this commentary are those of Tall Oak Capital Advisors as at the date of publication and are subject to change without notice. This commentary is presented only as a general source of information and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice. Statistics, factual data and other information are from sources Tall Oak believes to be reliable but their accuracy cannot be guaranteed. This commentary is intended for distribution only in those jurisdictions where Tall Oak Capital Advisors are registered. Securities-related products and services are offered through Raymond James Correspondent Services Ltd., member Canadian Investor Protection Fund. Insurance products and services are offered through Gryphin Advantage Inc., which is not a member-Canadian Investor Protection Fund. This commentary may provide links to other Internet sites for the convenience of users. Tall Oak Capital Advisors is not responsible for the availability or content of these external sites, nor does Tall Oak Capital Advisors endorse, warrant or guarantee the products, services or information described or offered at these other Internet sites. Users cannot assume that the external sites will abide by the same Privacy Policy which Tall Oak Capital Advisors adheres to.
