Mackenzie Canadian Dividend Equity
Mandate commentary
Q3 2025
Highlights
① Positive returns for the mandate. Negative stock selection in the materials sector and an underweight in the information technology sector led to underperformance against the benchmark.
② Balancing geopolitical uncertainty with positive economic fundamentals.
③ Broad diversification remains the best way to handle mixed market conditions.
Mandate overview
The mandate performed positively over the period and underperformed its benchmark. The broader Canadian market had strong returns in the quarter. Positive stock selection in the consumer discretionary sector contributed positively to returns relative to the benchmark. This was offset by an underweight and negative stock selection in the information technology sector. Negative stock selection in the materials sector also detracted from relative performance versus the benchmark.
Mandate: Overall positive returns underperforming the benchmark.
Performance contributors
Positive stock selection in the consumer discretionary sector contributed positively to relative performance over the period.
Performance detractors
An underweight and negative stock selection in the information technology sector and negative stock selection in the materials sector detracted from relative performance over the period.
Total gross returns:
Total return | QTD | YTD | 1YR | 3YR | 5YR | since INC. (NOV. 14, 2016) |
MACKENZIE CANADIAN DIVIDEND EQUITY | 8.73%
| 9.41%
| 19.93%
| 15.94%
| 16.52%
| 9.71%
|
Mandate repositioning
The mandate added to its existing position in Manulife Financial and initiated a new position in Keyera Corp.
The mandate trimmed its position in Suncor and exited its position in Telus International.
Market overview: signs of optimism emerge, despite the noise during "Liberation Day" fallout
The third quarter delivered broad gains across asset classes, with market performance largely overriding a backdrop of cautious sentiment. Investors looked past persistent trade policy headlines, increasingly treating the U.S. administration's tariff policy as noise rather than a core risk. The primary catalysts for the positive performance were a subtle shift toward lower-interest-rate expectations and resilient corporate earnings.
Signals from the U.S. Federal Reserve of imminent rate cuts were followed by a quarter percentage cut in September. Government bond yields eased into the quarter's end, supporting bond prices, while corporate bonds outperformed government bonds.
Market outlook: solid reasons for optimism, despite ongoing uncertainty
Looking ahead, the normalization of inflation is a key development, providing central banks with the flexibility to begin an easing cycle over the next six to 12 months. This anticipated shift toward more accommodative monetary policy is expected to lower borrowing costs, creating a supportive foundation for economic activity.
This should help the macroeconomic environment sustain corporate strength. Earnings are projected to remain robust, building on a consistent trend of exceeding expectations. Resilient corporate profitability continues to be a primary driver of market performance.
The combination of impending rate cuts and durable earnings growth establishes a constructive outlook for equities. This environment reinforces the principle that focusing on underlying fundamentals, rather than reacting to short-term market volatility, is a prudent strategy for capturing future growth potential.
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This commentary may contain forward-looking information, which reflects our or third-party current expectations or forecasts of future events. Forward-looking information is inherently subject to, among other things, risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed herein. These risks, uncertainties and assumptions include, without limitation, general economic, political and market factors, interest and foreign exchange rates, the volatility of equity and capital markets, business competition, technological change, changes in government regulations, changes in tax laws, unexpected judicial or regulatory proceedings and catastrophic events. Please consider these and other factors carefully and do not place undue reliance on forward-looking information. The forward-looking information contained herein is current only as of September 30, 2025. There should be no expectation that such information will in all circumstances be updated, supplemented or revised, whether as a result of new information, changing circumstances, future events or otherwise.
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