Mackenzie North American Value Equity
Mandate commentary
Q2 2025
Highlights
① Positive returns for the mandate underperformed the benchmark. Positive stock selection in the communication services sector in both Canada and the U.S., and positive stock selection in the consumer staples sector in the U.S., contributed positively to returns. This was offset by an underweight position and negative stock selection in the information technology sector.
② Equities staged a sharp V-shaped recovery after tariff reversal.
③ Investors look ahead to trade-policy clarity.
Mandate overview
Performance was positive over the period and underperformed the benchmark. The Canadian market outperformed the U.S. market this past quarter (in local currency terms). Positive stock selection in the communication services sector in Canada contributed positively to returns relative to the benchmark. An underweight position and negative stock selection in the information technology sector in Canada contributed negatively to returns. Negative stock selection in the industrials sector also detracted from overall performance.
In the U.S., positive stock selection in the communication services and consumer staples sectors contributed positively to returns relative to the benchmark. This was offset by negative stock selection in the consumer discretionary and financials sectors.

Mandate: Positive returns underperforming the benchmark
Performance contributors
Positive stock selection in the U.S. communication services and consumer staples sectors contributed positively to relative performance.
Positive stock selection in the Canadian communication services sector also contributed very modestly to relative performance.
Performance detractors
An underweight position and negative stock selection in the Canadian information technology sector was the biggest detractor from relative performance. Negative stock selection in the industrials sector was also a notable detractor from relative performance.
Negative stock selection in the U.S. consumer discretionary sector was a material detractor from relative performance.
Total gross returns:
Total return | QTD | YTD | 1YR | 3YR | 5YR | SINCE INC. (NOV. 14, 2016) |
MACKENZIE NORTH AMERICAN VALUE EQUITY | 4.73%
| 8.29%
| 19.77%
| 15.18%
| 16.04%
| 9.98%
|
Mandate repositioning
The mandate initiated a new position in Gildan Activewear Inc. and exited its position in Restaurant Brands International Inc.
The mandate modestly added to its existing position in Brookfield Asset Management Ltd. and trimmed its position in Nutrien Ltd.
Market overview: volatility gripped global markets during "Liberation Day" fallout
The second quarter of 2025 served as a stark lesson in the market’s ability to absorb sharp, politically driven shocks. The period was dominated by the U.S. administration's chaotic trade policy, beginning with the April announcement of sweeping tariffs, which sent global equities into a tailspin. The S&P 500 Index plunged into correction territory, marking its most significant retreat since March 2020.
This initial panic sent investors fleeing to safe havens, a move clearly reflected in the 5.7% surge in gold prices this quarter. However, the administration’s subsequent and rapid reversal of the policy triggered an equally dramatic V-shaped recovery. The initial fear that gripped the market evaporated, and major equity indices charged back into positive territory
Throughout this turbulence, central banks remained on the sidelines. The U.S. Federal Reserve (the Fed) and the Bank of Canada (BoC) held rates steady, caught between the inflationary threat of tariffs and the risk of a corresponding economic slowdown.

Market outlook: solid reasons for optimism, despite ongoing uncertainty
The world is rarely free of turmoil. Over the past five years, the world economy has faced a global pandemic, multi-decade inflation highs, aggressive interest rate hikes and significant international conflicts. Yet, despite these challenges, markets have demonstrated resilience as businesses adapt, consumers adjust, and economies discover new pathways to growth.
Looking ahead, trade policy clarity and its influence on corporate earnings will be key drivers of market sentiment. Attractive equity valuations and the potential for mid-teens earnings growth provide reasons for optimism, though uncertainty around policy and geopolitical risks remains a headwind. Central banks are expected to shift toward more accommodative monetary policy, with rate cuts anticipated in some regions. This could support economic growth while stabilizing markets, particularly in fixed income.
Persistent volatility may weigh on sentiment in the near term, especially in areas more exposed to trade tensions. However, as these risks moderate, the outlook should improve, with opportunities emerging in sectors poised to benefit from easing uncertainty. It’s important to remember that volatility, while challenging, can also create opportunities.
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