Portfolio returns: Q3 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Oct 25, 2021) |
IG Climate Action Portfolio – Global Equity F | 0.61 | -1.65 | 13.79 | 15.09 | 19.38 | 9.15 | ||
Quartile rankings | 2 | 4 | 2 | 2 | 2 |
IG Climate Action Portfolio - Global Equity Series F
Q3 commentary 2026
Highlights
① The portfolio generated a negative return for the quarter.
② The Rockefeller and Greenchip funds were among the largest detractors from performance during the quarter.
③ The Betterworld Global and Betterworld Canada I funds were among the strongest contributors to performance.
Portfolio Overview
Global markets were volatile in the third quarter, as resilient economic activity and corporate earnings competed with persistent inflation, geopolitical tensions and trade uncertainty. U.S. spending and investment remained firm, while elevated inflation prompted the U.S. Federal Reserve to raise its policy rate by 25 basis points in September. In Canada, economic activity improved and the Bank of Canada held its policy rate at 2.25%.
Equities advanced despite rising bond yields. U.S. stocks reached record highs on resilient earnings, while Canadian equities also gained, supported by energy shares. Fixed income faced pressure, as persistent inflation, higher energy prices, policy tightening and heavy sovereign issuance pushed yields higher. U.S. Treasury and Government of Canada yields rose, weighing on government bonds, while credit markets were comparatively resilient.
The IG Climate Action Portfolio – Global Equity generated a negative return for the quarter.
The Mackenzie Betterworld Global Equity Fund, IG Climate Action Portfolios Betterworld Canada I and Putnam – IG Sustainable Leaders Pool were the largest contributors. The Mackenzie Betterworld Global Equity Fund generated positive returns and outperformed its benchmark, supported by stock selection and allocation effects in industrials and information technology and stock selection in energy. Stock selection in consumer discretionary, financials and health care detracted. The IG Climate Action Portfolios Betterworld Canada I also generated positive returns and outperformed, with stock selection and allocation effects in financials and industrials, an overweight allocation to information technology and stock selection in materials contributing positively. An underweight allocation to materials and stock selection in information technology, energy and consumer discretionary detracted. The Putnam – IG Sustainable Leaders Pool generated positive returns but underperformed its benchmark, with stock selection in health care and financials contributing most, while materials, information technology and energy detracted.
Rockefeller – IG Climate Solutions Pool, Mackenzie Greenchip Global Environmental Equity Fund and the iShares ESG Advanced MSCI USA ETF were the largest detractors. The Rockefeller – IG Climate Solutions Pool generated negative returns and underperformed its benchmark, with stock selection and allocation effects in industrials and information technology and stock selection in financials detracting. The Mackenzie Greenchip Global Environmental Equity Fund also generated negative returns and underperformed, reflecting overweight allocations to utilities and industrials and both stock selection and allocation effects in information technology. The iShares ESG Advanced MSCI USA ETF also generated a negative return and detracted from performance.
Market overview: earnings growth provided a powerful tailwind for equities
The third quarter showed that the current business cycle still has support, but risks have shifted. Growth held up, earnings improved and corporate investment remained firm, but higher oil prices, persistent inflation and rising long-term yields made the path forward less certain. Equities advanced as earnings provided fundamental support, even as higher rates raised the bar for further gains.
Canadian equities benefited from gains in resources and financials. Higher oil prices supported energy, while precious-metals companies were among the strongest performers. Bank earnings were supported by capital-markets activity, trading income and contained credit costs. U.S. equities also advanced, supported by strong earnings and continued technology investment. Higher yields weighed on more rate-sensitive areas.
International markets remained constructive overall, with parts of Asia benefiting from continued demand across the AI technology supply chain. Fixed income faced greater pressure as rising government bond yields outweighed coupon income, while credit remained comparatively resilient. Across markets, the central tension increasingly became earnings strength versus higher inflation and interest rates.
Market outlook: equities remain attractive
We remain overweight equities, as they continue to offer the most attractive opportunity among major asset classes, as elevated oil prices and yields have yet to materially weigh on earnings.
Within equities, we remain underweight Canada, where trade uncertainty with the U.S. and elevated financial-sector valuations remain headwinds. We favour developed Asia, particularly Japan, where attractive valuations and continued AI hardware spending are supportive, and maintain an overweight to U.S. small-caps, although conviction has been trimmed following strong performance.
In currencies, the recent Canadian dollar sell-off has improved its valuation against the U.S. dollar, with elevated oil prices providing additional support. We also continue to favour the Japanese yen, which remains the most undervalued G7 currency.
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