Portfolio Manager's Notes

May 2026

 

Introduction

Enclosed in this edition of the Portfolio Managers’ Notes, we are pleased to share BMO Private Wealth’s latest global markets commentary, providing an update on equity markets and insights from our strategist. We have also included a report on Emera, a model portfolio holding that recently released strong first-quarter results.

In the Wealth Management section, you will find a summary article on the importance of having a solid business transition plan for women entrepreneurs, noting that only a small proportion currently have one in place. We have also included an article on the role of the executor and why it is important to fully consider the implications before agreeing to take on this responsibility. We encourage clients who have not yet completed their 2026 contributions to registered plans are encouraged to proceed as soon as funds permit.

We hope you have been enjoying the gradual start to spring. As always, please remember that we are here to help should you have any questions or wish to review your investment portfolio or financial plan.

 

Market Research

BMO Nesbitt Burns Global Commentary

Resounding Resilience

“When everything seems to be going against you, remember the airplane takes off against the wind, not with it.”

– Henry Ford

 

Most global equity indices turned in a surprisingly robust performance in April despite the unresolved Middle East conflict. Transit of everything (including dry goods) remained at a virtual standstill in the Strait of Hormuz. Gasoline prices soared more than 20% – the biggest monthly spike in over 50 years – thanks to the closure of this mission-critical pathway that normally sees daily traffic of roughly 20 million barrels of crude oil and related products. Prices for key derivative products like liquefied natural gas (LNG) surged even more.

These sharp spikes quickly translated into higher headline inflation numbers and nearly universal handwringing among energy strategists. They have been predicting dire consequences because the knock-on impacts can potentially burrow their way deeper into core inflation readings. Decision makers at central banks heard the message loud and clear. They postponed talk of continued rate cuts until far into the future and formally debated the possibility of rate hikes if the Strait fails to open soon. Equity investors, on the other hand, missed the memo.

Read More

 

Emera: EMA-TSX

Q1 - Strong Results Demonstrate Solid Momentum for 2026; Target to $76

 

Bottom Line:

Q1/26 results highlighted the significant torque EMA has in Marketing/Trading (over $100M earnings just this Q), but also robust growth in core U.S. regulated utilities (earnings +10% YoY). At the same time, EMA's closing of New Mexico Gas is expected by mid-year which further shores up the balance sheet, regulatory clarity has been achieved in its largest utilities through 2027, and the Florida DC opportunities (discussions with 1.3GW) could add further upside to base plan. We maintain our Outperform rating and target to $76 (vs. $74).

Please contact us to obtain a copy of the full report

 

Wealth Management

The one big risk women are taking with their finances

When Elizabeth Bozek sits down with female clients in her role as Director of Estate Planning at BMO Private Wealth, she sees a familiar pattern. They are engaged, curious and clear-eyed about what is at stake. They listen. They ask questions. They want to understand the full picture.

So why doesn’t that always translate into action when it comes to long-term financial planning?

Women are often seen as careful stewards of their wealth. Research consistently shows they tend to be more risk-averse than men when investing, favouring stability and long-term security over aggressive growth. It’s a sound instinct and one you might expect to carry across every part of their financial lives.

But it doesn’t always play out that way. Only 36 percent of women business owners have a detailed transition plan in place, compared to 43 percent of men. And a recent BMO survey of women business owners found they were less likely than men to have detailed plans across virtually every financial category, leading with estate considerations – gaps that can expose assets, businesses and families to unnecessary risk.

Read More

 

Named and executor? Here's what to consider before you say "yes"

When someone you love names you as the executor of their estate, it can feel like an act of trust. Of course, you want to say yes. But before you do, it’s worth understanding what you’re getting into, estate planning experts say. These days, the role of executor has become more demanding than ever – physically, emotionally and even financially – and it deserves careful consideration before you agree.

What once might have been perceived a “temporary” administrative job can quickly become a long-term fiduciary commitment and a heightened personal risk for anyone accepting the role.

The executor is responsible for making sure every aspect of an estate is handled properly, says Kirk O’Brien, Director, Wealth & Tax Planning with BMO Private Wealth. Not only is it a high-pressure situation, considering the heightened emotions and family dynamics, but missteps can carry real consequences.

Here’s what you need to know to navigate the role of executor with confidence – the time, the tasks, the risks and the moments when handing things off to a professional may be one of the smartest decisions you can make.

Read More