Finally, the school year is ending, the sun is coming out, and the April showers are solidly behind us. As you begin to enjoy the warmer months, we gathered our comments on the market to keep you posted.

Despite ongoing geopolitical uncertainty, the S&P 500 remains near all-time highs. Markets are showing that fundamental growth and the potential of artificial intelligence matter more than political volatility.

In local news, Vancouver politicians have made some progress, as municipal governments work together to keep the Vancouver Whitecaps from moving to Las Vegas. This will include searching for potential stadium sites, Hastings Park has been mentioned as an option, and the stadium would be privately funded.

https://www.sportsnet.ca/mls/article/whitecaps-city-of-vancouver-sign-agreement-on-pursuing-new-stadium/

In this issue, we’ve compiled a few updates for you:

Property Tax Deferral Rule Change
Mach 5 Commercial Jets
FIFA World Cup
AI IPOs
Introducing Victoria
Estate Planning

Property Tax Deferral Rule Change

British Columbia’s government announced they will be changing the rules regarding property tax deferral for seniors. The provincial administration updated their policy, as they observed that seniors were utilizing funds as a loan for investment opportunities.

The Previous Rule: For 2025 and years prior, seniors over 55 who deferred property taxes faced simple interest charges, with a rate of two percent below the prime bank rate.

For 2026 and Beyond: Interest owned on taxes deferred will compound (interest owed on interest). Seniors will face a new rate of the prime bank rate plus two percent.

Balances from 2025 and earlier remain unaffected. Furthermore, homeowners do not need to pay off any current balance to have the option of deferring future property taxes. The new rules are expected to allow the province to collect greater revenues and reallocate resources.

What Should Clients Do?

If you have been deferring property taxes, it is important to note that while this strategy may have been beneficial, it may now have diminishing returns moving forward. Consider contacting either us or your accountant if the change may have a significant impact on your lifestyle

https://www.seniorsadvocatebc.ca/current-issues/update-on-b-c-s-property-tax-deferment-program/

Hypersonic Passenger Jets

For those of you who enjoy travelling overseas, there could be an exciting future for commercial aircraft. Japan’s national space agency, JAXA, recently made strides with a hypersonic jet engine intended for commercial use. Working in collaboration with the University of Waseda, the University of Tokyo, and Keio University, researchers conducted a wind tunnel test of an integrated airframe and propulsion control.

The system was able to perform at Mach 5 (5 times the speed of sound) conditions without overheating. This represents significant progress within the aerospace sector, as the surface of the aircraft can easily reach temperatures of 1000 degrees Celsius, or 1832 degrees Fahrenheit, at such speeds.

If viable, this technology could cut flight times between Tokyo and North America’s west coast down to two hours. Although this technology is still years away from going to market, it is incredible to consider the possibilities this technology holds for global collaboration, as well as for travel enthusiasts.

https://www.israelhayom.com/2026/05/25/japans-mach-5-jet-could-cut-tokyo-us-flights-to-just-two-hours/

https://www.aerotime.aero/articles/japan-mach-5-ramjet-hypersonic-aircraft-test

FIFA World Cup

The highly anticipated FIFA World Cup kicked off in Mexico on June 11th. In Vancouver, the Science World globe has even been converted into a massive soccer ball for the duration of the tournament. The event is expected to add roughly a billion dollars to BC’s GDP. While the tournament is in town, the city expects around a million fans to visit. For those who are unable to make the trip, or for locals who would prefer to avoid the traffic, formally organized watch parties are being organized all over the Lower Mainland.

Spain and France are favoured to perform highly due to the strength of their players, and past performances, particularly France who took home the world champion title in 2018. Team Canada advanced for the first time in the FIFA world cup. Althouugh not a historical Canadian sport, soccer (football) has become very popular and many people are joining in the festivities and patriotically showing their support.

https://www.fifa.com/en/tournaments/mens/worldcup/canadamexicousa2026/articles/fifa-world-cup-2026-hosts-cities-dates-usa-mexico-canada

https://www.cbc.ca/news/canada/british-columbia/fifa-world-cup-benefits-vancouver-bc-9.7225612

AI IPOs

Artificial intelligence remains a key investment theme, and we continue to favor companies that are well positioned to benefit from its long-term growth. Investors are especially excited about the IPOs of notable companies Space X, Anthropic, and Open AI. Space X, famed for its Starlink satellite internet launch, went public on June 12th.

Open AI, renowned for their launch of Chat GPT, recently filed with the SEC, piquing investor interest and suggesting that an IPO date announcement is underway. Anthropic, the company behind Claude, yet another powerful AI model, has done the same. Anthropic and Open AI have yet to announce dates, however, they are highly speculated to go public in 2026 or 2027.

We do not generally invest directly in IPOs, we require a longer public history of the companies metrics to make our decisions. Furthermore, there could be a lot of hype already build up in the price of these securities, and want to avoid buying without proper fundamental support.

Clients do have exposure to these companies as some of our other holdings, such as Nvidia, Microsoft, and Brookfield, had invested while the companies were privately held.

https://finance.yahoo.com/markets/stocks/articles/spacex-anthropic-openai-rewrite-history-134201711.html

Introducing Victoria

We're pleased to welcome Victoria Pasin to our team this summer as an intern. Victoria is currently studying Finance and Economics at Simon Fraser University and has a strong interest in investment markets and wealth management. She has already impressed us with her curiosity, work ethic, and analytical approach.

This summer, Victoria will be working on a number of projects, including helping us develop a tool to enhance and streamline our investment screening process. We're excited to have her on board and look forward to working with her over the coming months.

Estate Planning

Wealth Management may primarily bring to mind investing and retirement planning, but an important consideration is also on preserving what you have built and minimizing taxes, especially to your estate.

While working, people have been encouraged to build up their RRSPs. In retirement, we now encourage clients to shift assets into the relatively new TFSAs. For many of our clients, we suggest they withdraw slightly more income than they need from their RRIFS, pay a little bit of additional tax and reinvest the excess into their TFSA. By depleting the RRIFs while alive, clients smooth out long term taxes at a lower rate, rather than paying a large tax bill at the end.

The TFSA is not taxable and can also name beneficiaries, allowing a very efficient transfer of assets to the next generation.

We cannot offer legal advice, but we do guide clients on issues surrounding their wills before they sit down with a lawyer, helping to ensure a smooth, cohesive plan.

As always, if you wish to discuss this, or any other planning question, please reach out.

Travis Kidson, B.Sc, CFP®, CIM®
Portfolio Manager | iA Private Wealth
Insurance Advisor | iA Private Wealth Insurance Agency
700-609 Granville St. Vancouver, BC
p: 604 895 3486
travis@beaconwealthpartners.ca

Jack Fournier B.Sc, FMA, CIM®
Portfolio Manager | iA Private Wealth
Insurance Advisor | iA Private Wealth Insurance Agency
700-609 Granville St. Vancouver, BC
p: 604 895 3348
jack@beaconwealthpartners.ca

This information has been prepared by Travis Kidson and Jack Fournier who are Portfolio Managers for iA Private Wealth Inc. and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Portfolio Managers can open accounts only in the provinces in which they are registered.

iA Private Wealth Inc. is a member o the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.

*Insurance products are provided through iA Private Wealth Insurance Agency which is a trade name of PPI Management Inc. Only products and services offered through iA Private Wealth Inc. are covered by the Canadian Investors Protection Fund.

Beacon Wealth Partners is a personal trade name of Jack Fournier and Travis Kidson.