Business Strategy - Bank of Nova Scotia is reducing workforce in its Canadian banking division [1] - The job cuts aim to improve long-term profitability [1]

Group 1 - The target price for Chevron has been raised from $160 to $165 by Scotiabank, maintaining a "sector perform" rating [1]

Group 1 - Canadian Imperial Bank of Commerce raised the target price for British Petroleum (BP.US) from $42 to $43 [1] - Canadian Imperial Bank of Commerce raised the target price for Chevron (CVX.US) from $160 to $165 [1] - Canadian Imperial Bank of Commerce raised the target price for ExxonMobil (XOM.US) from $125 to $128 [1]

Market Overview - Corporate America is about to disclose quarterly results, with high expectations as the S&P 500 Index is trading at 23 times expected earnings, comparable to dot-com levels, making stocks vulnerable to disappointments [1][17] - The ongoing government shutdown is creating uncertainty, leading to a potential 5% to 10% pullback in the S&P 500 this month due to seasonal risks and shutdown-related concerns [2][17] Investor Sentiment - The shutdown is negatively impacting investor sentiment, causing some to hold cash or take profits before year-end [2][17] - There is a notable trend of investors trimming positions in highly valued stocks like Nvidia Corp. to reallocate to lower-valued stocks such as Deere & Co. and Caterpillar Inc. [3][17] Historical Context - Historically, the S&P 500 has shown little change during the last 20 government shutdowns, with an average drop of 0.5% when excluding the 10% gain during the 2018 shutdown [8][17] Economic Data and Market Conditions - The delay in key economic reports, including non-farm payrolls and oil and gas storage statistics, is leaving traders without critical data, leading to a reliance on alternative sources [9][17] - The current market conditions are described as "foggy," with tensions surrounding the Federal Reserve's policy path, although the market still anticipates at least one more interest rate cut this year [10][17] Volatility and Hedging - Market volatility is expected to increase if the shutdown continues, particularly if it delays the upcoming consumer price index report [11][18] - There is a significant demand for hedging among investors, with a rise in the three-month put skew indicating increased costs for protection against stock declines [15][16][18]

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential and diversification opportunities [1] - The popularity of insurance companies in the Philippines since 2014 indicates a shift in investment strategies among local investors, moving towards a more diversified portfolio [1] - The trend of investing in blue-chip companies has evolved, with investors now holding a mix of stocks across various industries and market capitalizations, reflecting a more strategic approach to retirement and trading profits [1] Investment Focus - The primary focus areas for investment include banking, telecommunications, logistics, and hospitality sectors, both in the ASEAN region and on NYSE/NASDAQ [1] - The entry into the US market in 2020 has allowed for broader investment opportunities, with holdings in US banks, hotels, shipping, and logistics companies [1] - The use of analytical tools and resources, such as Seeking Alpha, has enhanced the ability to compare market performances between the US and Philippine markets [1]

Core Points - The Bank of Nova Scotia announced changes to its bond issue management, effective from September 29, 2025, with Citibank taking over key roles [1][2] - The affected bonds include a total of EUR 7.56 billion, GBP 2.6 billion, USD 5.75 billion, and CHF 1.36 billion across various maturities [4] Summary by Sections Bond Management Changes - Scotiabank's London Branch will cease its roles as Paying Agent, Transfer Agent, and Registrar for existing bonds, transferring these responsibilities to Citibank's London Branch [2] - The New York Agency of Scotiabank will also withdraw from its functions, with Citibank Europe Plc succeeding these roles [2] Affected Bonds - The changes impact a range of bonds, including euro bonds maturing from 2026 to 2041, pound-linked floating rate notes due in 2026, US dollar bonds maturing in 2026 and 2027, and Swiss franc bonds maturing between 2025 and 2029 [3] - The total value of the affected bonds is EUR 7.56 billion, GBP 2.6 billion, USD 5.75 billion, and CHF 1.36 billion [4] Additional Information - UBS AG will continue to act as the Swiss Paying Agent for the bank's CHF issues [3] - The Bank of Nova Scotia is based in Toronto and provides personal and business banking services, including lending and trade finance [4]

Core Insights - Dynamic has launched the Dynamic Multi-Alternative PLUS Fund (DMAP), a liquid alternative mutual fund aimed at providing attractive risk-adjusted returns and lower correlation to traditional markets [1][2] Fund Overview - The DMAP Fund is designed as a one-ticket solution for investors seeking diversified exposure to alternative investments, which can help mitigate market volatility [2] - The fund aims to deliver income and long-term capital appreciation by investing across a wide range of asset classes, including debt, options, structured finance, equity, and private assets, while dynamically adjusting allocations based on market conditions [2] Management Team - The fund is co-managed by Richard J. Lee and Nick Stogdill, who collectively bring over 35 years of experience in alternative strategies [3] Company Background - Dynamic is a division of 1832 Asset Management L.P., which offers various wealth management solutions, including mutual funds and actively managed ETFs [4]

Group 1: S&P 500 Overview - The S&P 500 index currently has an average yield of around 1.2%, which may not be sufficient for most investors' retirement goals [1] Group 2: Realty Income - Realty Income is known as "The Monthly Dividend Company," emphasizing its commitment to reliable dividend payments, having increased payouts annually for 30 consecutive years [2] - As a major player in the net lease REIT sector, Realty Income owns over 15,600 properties, focusing on retail and industrial assets, although its growth rate is slow due to its size [3] - Realty Income offers a dividend yield of 5.3% at current share prices, making it attractive for income investors [4][7] Group 3: T. Rowe Price - T. Rowe Price has a strong asset-management business with a customer base that is generally reluctant to move their investments, contributing to its reliability [6] - The company faces pressure on its assets under management due to the rise of low-cost ETFs, but it is adapting by introducing ETFs and expanding into private market investments [8] - T. Rowe Price currently has a dividend yield of 4.9% and benefits from a debt-free balance sheet [7][8] Group 4: Bank of Nova Scotia - The Bank of Nova Scotia also offers a dividend yield of 4.9% and has a long history of paying dividends since 1833 [7]

Core Viewpoint - Canadian Imperial Bank of Commerce downgraded Freeport-McMoRan Inc. from "Outperform" to "Market Perform" and reduced the target price from $55 to $45 [1] Group 1 - The downgrade reflects a shift in the bank's outlook on Freeport-McMoRan's performance within the industry [1] - The target price adjustment indicates a more cautious approach towards the company's future valuation [1]

Core Investment Thesis - Canadian banks, specifically Toronto-Dominion Bank (TD) and Bank of Nova Scotia (Scotiabank), offer higher dividend yields compared to average large U.S. banks, with TD at 3.9% and Scotiabank at 4.9% [1][2] Group 1: Regulatory Environment - Canadian banking regulations are stricter than those in the U.S., leading to a more stable and conservative banking environment [3][6] - TD and Scotiabank benefit from entrenched industry positions due to regulatory support, creating an oligopolistic market structure [5] Group 2: Historical Performance - Both banks have maintained consistent dividend payments for over 100 years, demonstrating reliability and resilience during economic downturns [6][7] - Unlike U.S. banks, TD and Scotiabank did not cut dividends during the 2007-2009 recession, showcasing their conservative management approach [6] Group 3: Growth Prospects - TD Bank's U.S. division faced challenges due to regulatory issues related to money laundering, resulting in an asset cap that limits growth until resolved [8][10] - Scotiabank is shifting focus from Central and South America to increase its presence in the U.S. market, including a nearly 15% stake in KeyCorp [11][12] Group 4: Investment Appeal - Both banks are positioned as attractive options for dividend investors, with Scotiabank showing aggressive growth strategies and recent dividend increases as a sign of positive transition [13] - Despite recent price gains, TD and Scotiabank have lower forward-looking P/E ratios compared to U.S. banks like Citigroup, indicating potential undervaluation and growth opportunities [15]