Mackenzie Ivy International Equity
Mandate commentary
Q3 2025
Highlights
① Strong stock selection in the consumer staples and information technology sectors were the largest contributors.
② Balancing geopolitical uncertainty with positive economic fundamentals.
③ Broad diversification remains the best way to handle mixed market conditions.
Mandate overview
Performance was positive but underperformed the benchmark. Stock selection in the financial and health care sectors detracted from relative performance. Additionally, an overweight position in financials and an underweight position in health care further contributed to the underperformance. Stock selection in the information technology, consumer staples and communication sectors positively impacted performance compared to the benchmark, effectively offsetting areas of relative underperformance. Financials and consumer discretionary were the top-performing sectors this quarter.
Mandate: Positive returns that underperformed the benchmark
Performance contributors
Stock selection in the information technology, consumer staples and communication services sectors positively contributed to relative performance.
Stock selection to Asia/Pacific ex-Japan contributed to relative performance.
Performance detractors
Stock selection in the financial and health care sectors detracted from relative performance. Additionally, an overweight position in financials and an underweight position in health care further contributed to the underperformance.
Total gross returns:
Total return | QTD | YTD | 1YR | 3YR | 5YR | since INC. (NOV. 14, 2016) |
MACKENZIE IVY INTERNATIONAL EQUITY | 1.86%
| 5.03%
| 9.17%
| 17.10%
| 6.32%
| 6.54%
|
Mandate repositioning
During the quarter, the mandate added a position in Sony Group.
The mandate exited positions in Olympus Corp.
The mandate added to existing positions in Novo Nordisk, Sika AG, Wolters Kluwer, Japan Exchange Group and Deutsche Boerse AG.
The mandate trimmed its positions in Pan Pacific International Holdings, Brambles Limited, Ajinomoto, Legrand SA and Taiwan Semiconductor.
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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