Portfolio returns: Q2 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Oct 25, 2021) |
IG Climate Action Portfolio –Global Fixed Income Balanced F | 1.40
| 6.40
| 6.19
| 9.89
| 9.13
| 4.31
| ||
Quartile rankings | 1 | 1 | 2 | 3 | 2 |
IG Climate Action Portfolio - Global Fixed Income Balanced Series F
Q2 commentary 2026
Highlights
① The portfolio generated a positive return for the quarter.
② Equity allocations were the largest contributors, supported by the rebound in risk sentiment and renewed investor enthusiasm for companies connected to the AI investment cycle.
③ There were no detractors during the quarter. Fixed income holdings generated modest gains, amid shifting monetary policy.
Portfolio Overview
Global equities surged in Q2 2026, driven by the AI infrastructure boom and de-escalating geopolitical tensions. Emerging and developed markets saw gains, propelled by information technology and semiconductors. Canadian equities lagged global peers; declines in energy and materials offset strong financial sector performance. A stronger U.S. dollar reduced non-U.S. returns for Canadian investors. Globally, growth stocks outperformed value stocks.
Commodity markets reversed, as geopolitical risk premiums faded. Oil plunged, as Middle East conflicts de-escalated, easing supply fears. Gold and Bitcoin also suffered pullbacks, losing support amid sticky inflation and hawkish central bank outlooks.
Fixed income saw modest returns amid shifting monetary policy. Core government bonds were flat, as the U.S. Federal Reserve’s hawkish tone on persistent inflation prompted markets to reprice expectations toward potential rate hikes. Despite these duration headwinds, credit markets outperformed core government debt, benefiting from tightening corporate spreads and resilient earnings.
The IG Climate Action – Global Fixed Income Balanced generated a positive return for the quarter.
The iShares ESG Advanced MSCI USA ETF, Mackenzie Betterworld Global Equity Fund and Rockefeller IG Climate Solutions Pool were the largest contributors to performance. The iShares ESG Advanced MSCI USA ETF generated positive returns, supported by the broad rally in U.S. equities and renewed investor enthusiasm for companies connected to the AI investment cycle. The Mackenzie Betterworld Global Equity Fund delivered positive returns for the quarter and outperformed its benchmark. Strong selection in financials, consumer staples and industrials contributed the most to performance, while selection in health care and consumer discretionary detracted. The Rockefeller IG Climate Solutions Pool also generated positive returns for the quarter. Stock selection in financials and a lack of exposure to energy and communication services contributed the most to performance, while stock selection in information technology and an underweight allocation to the sector were the main detractors.
There were no detractors during the quarter. The PIMCO Climate Bond Fund Series I, Mackenzie Global Sustainable High Yield Bond Fund and Mackenzie Sovereign Bond Fund were the smallest contributors to portfolio returns. These holdings generated positive returns but contributed less than the equity allocations during the quarter. Sovereign bond returns were constrained by elevated government bond yields and cautious central bank policy.
Market overview: earnings strength helped markets absorb uncertainty
The second quarter of 2026 reinforced the resilience of financial markets. Investors faced conflict in the Middle East, commodity-price volatility, shifting interest-rate expectations and renewed inflation concerns, yet global equities continued to advance as corporate earnings and economic activity remained stronger than expected. The S&P 500 gained 14.9% in U.S.-dollar terms for the quarter, while the S&P/TSX Composite Index advanced 6.4%, supported by healthier earnings expectations and improving market breadth.
Canadian equities were led by a strong rebound in financials, as better-than-expected bank earnings, resilient credit quality and improved capital markets activity lifted sentiment. U.S. equities were supported by earnings strength rather than a simple risk-on rally, with Information Technology leading as AI infrastructure spending continued to anchor sentiment. International equities also contributed meaningfully, with emerging markets Korea and Taiwan benefitting from demand across the global technology supply chain.
Market outlook: neutral outlook on equities, neutral duration stance in bonds.
Our outlook for equities remains neutral. While the fundamental backdrop of the economy and corporate earnings remains strong, we are cautious of stretched retail investor positioning, which increases the vulnerability to sharp market sell-offs. From a relative standpoint, we favour U.S. small caps over Canadian equities. The robust U.S. economy continues to support U.S. small caps, which have remained undervalued for a prolonged period, whereas recent Canadian economic data has shown notable weakness. Additionally, we have closed our underweight position in European equities, as the region's economic data has begun to improve.
In fixed income, we maintain a neutral duration stance. Aggressive inflation-fighting rhetoric from the new U.S. Federal Reserve Chair has triggered a flattening of the yield curve, driving short-term yields higher as additional rate hikes are priced in, while long-term yields have declined on lower long-term inflation expectations. This unique curve dynamic, combined with persistently strong U.S. economic data, reinforces our measured and balanced approach to bond positioning.
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Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus and speak to an IG Advisor before investing. The rate of return is the historical annual compounded total return as of June 30, 2026, including changes in value and reinvestment of all dividends or distributions. It does not take into account sales, redemption, distribution, optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, values change frequently and past performance may not be repeated. Mutual funds and investment products and services are offered through the Mutual Fund Division of IG Wealth Management Inc. (in Quebec, a firm in financial planning). And additional investment products and brokerage services are offered through the Investment Dealer, IG Wealth Management Inc. (in Quebec, a firm in financial planning), a member of the Canadian Investor Protection Fund.
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