2025 Q2 Newsletter
As Canada Day approaches, it’s a good time to pause and appreciate everything this country has to offer. Canada is home to over 40 million people—and that’s not even counting the estimated 700,000 moose, 2 million caribou, and 18,000 polar bears that roam its vast wilderness. With more lakes than any other country (including 563 that are larger than 100 square kilometers) and 10% of the world’s forests, Canada is rich in natural beauty and biodiversity. It’s no surprise that in 2024, it was ranked the #1 safest country to travel to, according to Berkshire Hathaway Travel Protection.
Whether you’re spending the weekend hiking, grilling on the deck, or just trying to keep up with a backyard full of kids and cousins, we hope you enjoy some well-earned downtime.
This quarter our newsletter will focus on the following topics:
Unintended Policy Outcomes
Greg Valerie – Comments on Trump and US Policy
Northvolt – Skilled Labour Issue
AI for Advisors – One of the First Firms to Implement in Canada
Spotlight Series on Estate Planning Part 2
Canada’s Energy Mix
Inheritances
Unintended Policy Outcomes
Source: KCL
The Trump administration has pushed hard on trade and defense, arguing that U.S. exports face unfair barriers and that other NATO members rely too heavily on American defense spending. In response, it introduced tariffs and demanded allies increase their defense contributions.
While these moves aimed to protect U.S. interests, they’ve also led to unintended consequences. Many countries are now looking to reduce their reliance on the U.S. — both in trade and in defense.
The European Union’s new SAFE (Security Action for Europe) program is a direct result. It’s designed to coordinate defense spending among member countries, avoid duplication, and make equipment purchases more efficient. But this shift also means fewer defense contracts for U.S. companies.
Canada’s recent decision to join SAFE, announced by Prime Minister Carney on June 23rd, is a major signal. He highlighted the benefits of accessing each other’s defense industries and mentioned exploring alternatives to U.S.-made jets — like Sweden’s Gripen — instead of buying more American-made F-35s.
This may be a case of be careful what you wish for: by pushing allies too hard, the U.S. has encouraged them to become more independent — at America’s expense.
Greg Vallerie – Comments on Trump and US Policy
Every morning, we review a range of reports and articles to stay current on markets, news, and global events. One of the voices we find particularly insightful is Greg Valliere, the Chief U.S. Policy Strategist at AGF Investments. With over 40 years of experience analyzing U.S. politics, his commentary helps us understand how policy developments may impact the markets.
In a recent update, Valliere noted that Trump met with Republican lawmakers and received strong feedback on the negative impact of tariffs on the economy. As a result, Trump appears to be softening his stance—especially as he listens to experienced economic advisors. While the U.S. dollar remains a key safe haven, there’s growing hope that tariffs will ease and attention will shift toward tax and regulatory reforms. Trump has also begun speaking more critically of Putin and may adopt a less combative tone with China going forward.
Northvolt – Skilled Labour Issue
We came across an interesting article in Bloomberg we felt was relevant to share, as it highlights some of the issues being faced in Europe and North America – skilled labour.
Source: Bloomberg
Northvolt, a Swedish battery manufacturer founded in 2015, set out to lead the clean energy transition with large-scale battery production. Backed by over $15 billion in funding and $55 billion in customer orders, they opened a major plant in northern Sweden and planned to build another in Canada creating almost 3,000 jobs. However, the company struggled to grow due to several factors. Unfortunately, production fell far short of targets, and major customers like BMW pulled out due to delays and quality concerns. Northvolt also faced safety incidents, equipment issues, and a shortage of skilled labour—especially technicians and engineers.
Northvolt’s story is a reminder that even well-funded, innovative companies can stumble without the right workforce and operational focus. In Canada and the U.S., the shortage of skilled labour—especially in the trades and advanced manufacturing—is becoming a major bottleneck for growth in sectors like clean energy, construction, and technology. In contrast, many Asian countries have spent decades developing a deep, experienced industrial workforce, making them essential global trade partners. Their ability to scale production efficiently and maintain high-quality output continues to play a vital role in the global supply chain.
AI for Advisors – One of the First Firms to Implement in Canada
Source: Lockheed Martin
Recently Jack and Travis went to the annual conference our firm hosts, which updates advisory teams on some of the progress being made internally. Many firms and banks in Canada have released versions of AI for their clients, however we have launched AI software that will be beneficial for advisory teams to be more efficient for administrative tasks.
Yes, Tracy is very happy about this!
Source: InCharge Solutions
Spotlight Series on Estate Planning Part 2
We just released our second video on some estate planning questions – focusing around Wills.
Click here to watch our estate planning video: https://www.beaconwealthpartners.ca/education1/2025/6/5/spotlight-series-estate-planning-part-2
Part 3 will be released next quarter with a focus on retirement tax planning to maximize estate values.
Canada’s Energy Mix
We recently came across some interesting facts in Business in Vancouver (May 26 – June 2, 2025).
Canada’s electricity mix is about 82% non-fossil fuel, with the majority coming from hydropower. In provinces like British Columbia, Manitoba, and Quebec, around 90% of electricity is generated from hydroelectric dams.
Electricity grids are complex and must constantly balance supply and demand. Ideally, we would have strong interprovincial connections to share power during disruptions—such as extreme weather or wildfires. However, progress has been limited due to historical interprovincial politics and trade restrictions. The federal government has identified reducing these barriers as a priority. We’ve heard this before—but perhaps this time, change is actually coming.
Source: True North
Looking ahead, Ontario expects electricity demand to rise by 75% by 2050. But with long, cold winters, wind and solar energy aren’t always reliable. Ontario already relies heavily on nuclear energy and has recently signed an agreement to build four small modular reactors (SMRs). Each reactor would generate 300 megawatts, enough to power about 300,000 homes. This would be the first SMR project in any G7 country, and the hope is that these reactors will be simpler and cheaper to build over time.
Inheritances
We’ve been sharing ideas around estate planning, helping clients navigate key issues like taxes, probate, and family dynamics. In mid-June, The Economist published an article highlighting the growing amount of wealth expected to be passed down over the coming years. While many people will inherit modest sums, some will receive significant fortunes.
But how will those inheriting manage that money?
The article referenced a book called The Missing Billionaires, which looked at more than 4,000 American families who had over $1 million in assets at the start of the 20th century. Surprisingly, very few of their descendants became billionaires.
Source: Economist
The authors identified two main reasons—both highly relevant to today’s retirement and investment planning:
Poor investment choices: Many heirs lacked a disciplined approach. A well-diversified portfolio, regularly adjusted over time, could have helped preserve wealth across generations.
Unsustainable withdrawals: Many spent too much, too fast. Withdrawal strategies based on the original amount invested—rather than a thoughtful, sustainable rate—often led to the erosion of capital.
These lessons apply not just to those expecting inheritances, but to anyone thinking about long-term financial sustainability. Whether it’s managing inherited wealth or planning for retirement, these principles are central to the work we do for you.
We hope you enjoy some quality time with family and friends this weekend. Thank you for your continued trust in us—if you have any questions or want to chat, we’re always here to help.
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
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
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 of 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.