by Tom Bradley

While the world is being turned upside down and our relationship with our southern neighbour, and democracy in general, is in question, we’ve added more uncertainty to the mix—a change of ownership at Steadyhand.

In June, we closed our deal to sell the firm to Purpose Unlimited. This important step will be good for our clients and team, and will help fuel our ambition to be a bigger positive force in the investment industry. As more responsibility falls on Canadians to manage their retirement savings (i.e. fewer defined benefit pension plans), we want investors to benefit from our investing process and client experience.

As you do, they can gain from a business model that revolves around prompt, friendly service, reasonable fees, accessible investment advice, a curated list of diversified funds, radical transparency, and of course, a steady hand when it’s most needed.

In Purpose, we found a partner who believes in our mission. In the words of Som Seif, our CEO: “From the outset, Purpose’s interest in Steadyhand came from a place of genuine admiration. Steadyhand’s client-first philosophy, long-term investment discipline, and clear, human approach to communication have always stood out in our industry. That’s not something we want to change—it’s something we want to protect, support, and build on.”

Som goes on to say, “What unites us is bigger than any one brand or platform. It’s a shared belief that finance should serve people—not the other way around. That advice should be honest. That investing should be simple. That outcomes—not products—are what truly matter.”

In these turbulent times, staying steady has never been more important for achieving good outcomes. In times of extreme pessimism, we often find ourselves pumping people up (just as we cool them down when expectations are too high). Now is one of those times.

In a recent post, Joe Wiggins, research director at St. James’s Place in the U.K., quoted Daniel Kahneman, a pioneer in behavioural finance. Kahneman said, “Nothing in life is as important as you think it is while you are thinking about it”, which Mr. Wiggins went on to say, “beautifully encapsulates our tendency to significantly exaggerate the importance of whatever is on our minds at any given moment.”

We believe today’s negativity is overdone, at least as it relates to your portfolio. The issues in the spotlight are real, but the mix of factors effecting capital markets is more balanced than you’re led to believe.

There are many companies outside of the hot sectors of artificial intelligence, crypto, and gold that are being overlooked and are unburdened by high expectations. There are well-run, well-financed companies that are users of AI, not providers, and are trading at reasonable valuations. Indeed, the valuation gap between the hot and the not is unusually wide.

As always, we encourage you to reach out if you have questions about your portfolio or our new ownership structure. Our Investor Specialists remain highly accessible, friendly, and ready to help where and when they can.

I encourage you to read the rest of our Q2 Report, where we provide more details on our specific strategies and what we've been doing in each of our funds.