Mackenzie Canadian Dividend Equity
Mandate commentary
Q1 2026
Highlights
① Positive returns for the mandate. Negative stock selection in the consumer discretionary sector had a negative impact on performance. The fund outperformed the benchmark.
② The oil shock drove turbulence, as commodities dominated inflation fears.
③ Global growth expectations will be adjusted if conflict extends beyond summer.
Mandate overview
The mandate performed positively over the period and outperformed its benchmark. An underweight allocation to the information technology sector as well as positive stock selection in the energy sector were the main drivers of the fund’s performance.
These were partially offset by stock selection in the consumer discretionary sector, which had a detracting effect on the fund’s performance relative to the benchmark.
Mandate: overall positive returns outperforming the benchmark.
Performance contributors
Underweight allocation to the information technology sector and positive stock selection in the energy sector contributed positively to relative performance over the period.
Performance detractors
Negative stock selection in the consumer discretionary and financials sectors 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 | 7.50
| 7.50
| 29.23
| 17.27
| 13.99
| 10.50
|
Mandate repositioning
The mandate eliminated positions in CCL Industries Inc.
The mandate did not add any new positions over the period; however, it added to existing positions in Brookfield Asset Management Ltd. (financials), Chartwell Retirement Residences (health care) and Keyera Corp. (energy), among others.
The mandate trimmed existing positions in ARC Resources Ltd. (energy), Finning International Inc. (industrials) and Canadian Natural Resources Limited (energy), among others.
Market overview: oil shock drove turbulence, commodities dominated inflation fears
The first quarter of 2026 began with supportive economic momentum; improving manufacturing, a stabilizing U.S. housing backdrop and contained inflation. However, this quickly pivoted as the conflict in the Middle-East involving Iran — along with trade disruption around the Strait of Hormuz — pushed energy commodities higher. The energy shock drove volatility across global equities, yet the underlying backdrop proved more resilient than headlines implied, reinforcing the value of diversification.
Canadian equities were resilient, as higher crude oil prices supported the energy sector and helped offset weaknesses in rate-sensitive areas. Defensive sectors, dividends and real-asset exposure provided additional insulation versus many global peers. U.S. fundamentals remained solid, but sentiment weakened as oil lifted inflation expectations. Investors rotated away from expensive, rate-sensitive growth stocks, making performance more about a valuation reset than deteriorating earnings.
Market outlook: global growth expectations will be adjusted if conflict extends beyond summer
Looking ahead, oil and energy prices remain the central swing factor. A credible path to de-escalation could shift attention back to the positive economic cycle evident early in the quarter; a prolonged disruption would maintain inflation uncertainty and elevated volatility.
In this environment, commodity producers and value‑oriented equities may provide resilience, while long‑duration assets and oil‑importing regions face greater sensitivity to energy-price fluctuations.
Diversification and flexibility remain central to portfolio construction
Canadian equities offer exposure to energy and materials supported by global supply constraints. International developed and emerging markets present valuation‑driven opportunities and help diversify away from concentrated U.S. equity exposure.
Within fixed income, short‑ to intermediate-duration strategies can balance yield and interest‑rate risk, complemented by high‑quality corporate bonds for disciplined income generation. Key areas to watch will be central bank policies, as they look at the impact of higher energy costs and their indirect tax on the consumer.
To discuss your investment strategy, speak to your IG Advisor.
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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 March 31, 2026. 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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