Portfolio returns: Q3 2025
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Oct 25, 2021) |
IG Climate Action Portfolio – Global Neutral Balanced F | 2.56
| 4.43
| 8.58
| 9.62
| 13.42
| 5.08
| ||
Quartile rankings | 3 | 3 | 3 | 3 | 2 |
IG Climate Action Portfolio - Global Neutral Balanced Series F
Q3 commentary 2025
Highlights
① The portfolio appreciated during the quarter, led by strong equity returns across multiple markets.
② U.S. equities were the top contributors to returns.
③ There were no detractors over the period.
Portfolio Overview
Global markets advanced in Q3 2025, fuelled by strength in AI-themed stocks, easing trade tensions and central bank rate cuts. The U.S. Federal Reserve and Bank of Canada each cut rates by 25 basis points (a quarter of a percentage point), citing slowing job growth. U.S. equities hit record highs, led by AI-technology and small-cap stocks. Canadian markets benefited from strength in materials, information technology and energy sector stocks. Emerging markets surged, fuelled by Chinese technology stocks and a weaker U.S. dollar. Gold rallied to historic highs, while oil prices dipped on soft demand and rising supply. Bond markets saw modest gains; high-yield bonds outpaced investment grade bonds, with emerging market bonds another beneficiary of a softer U.S. dollar.
The IG Climate Action Portfolio – Global Neutral Balanced generated a positive return for the quarter. The portfolio’s U.S. equity allocation was the leading contributor to portfolio returns.
The Mackenzie Betterworld Global Equity Fund, Rockefeller – IG Climate Solutions Pool and the IG Climate Action Portfolios – Betterworld Canada III were the largest contributors to performance. The Mackenzie Betterworld Global Equity Fund delivered positive returns for the quarter, though it lagged its benchmark. Strong stock selection in the industrials and materials sectors contributed most to performance, while stock selections in the health care and consumer discretionary sectors were the primary detractors. The Rockefeller – IG Climate Solutions Pool generated positive returns for the quarter, though it underperformed its benchmark. Performance was supported by an underweight allocation and favourable stock selection in both the financials and health care sectors. The IG Climate Action Portfolios – Betterworld Canada III posted positive returns but underperformed its benchmark for the quarter. Stock selection in health care and consumer discretionary contributed most to performance, while stock selection in the materials and financials sectors were the primary detractors.
There were no detractors this quarter. The Mackenzie Global Sustainable High Yield Bond Fund and the Mackenzie Sovereign Bond Fund were the smallest contributors to portfolio returns. Falling bond yields led to rising bond prices and were beneficial to fixed income returns in general.
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: Positive on equities, diversified globally, selective in bonds.
Our outlook for equities became positive in the period, as global markets proved resilient, with improving earnings revisions and stronger investor sentiment. We believe share valuations in Japan remain reasonable, and longer-term metrics suggest that developed international and emerging markets are more attractively valued than those in the United States and Canada.
We believe policy uncertainty and slower global growth are likely to cap inflation. Because tariff-related price increases appear transitory, we do not expect a lasting impact on fixed income investments. In Canada, we believe softer economic data has increased the likelihood of additional Bank of Canada policy rate cuts. In the United States, a more accommodative tone from the U.S. Federal Reserve and mounting fiscal and debt concerns led markets to price in further interest rate cuts into 2026, which we believe could pressure the U.S. dollar.
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