Portfolio returns: Q2 2025
Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. July 12, 2013 |
IG Core Portfolio – Balanced Growth Series F | 2.17
| 3.83
| 4.46
| 12.56
| 12.63
| 9.78
| 7.31
| 8.41
|
Quartile rankings | 3 | 3 | 2 | 2 | 2 | 1 | 1 |
Proudly Canadian
Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. July 12, 2013 |
IG Core Portfolio – Balanced Growth Series F | 2.17
| 3.83
| 4.46
| 12.56
| 12.63
| 9.78
| 7.31
| 8.41
|
Quartile rankings | 3 | 3 | 2 | 2 | 2 | 1 | 1 |
The IG Core Portfolio – Balanced Growth rose (3.8%) over the first quarter of 2025. It outperformed the Global Equity Balanced peer group median (3.5%). The portfolio benefited most from gains in its traditional equity components. Fixed income exposure detracted, mainly due to exposure to Canadian government bonds. Low volatility equities, U.S. small-capitalization equities and alternatives also detracted.
Many equity indices, including the S&P 500 Index (total return $CAD 5.1%), the S&P/TSX Composite Index (total return 8.5%), and the MSCI EAFE Index (total return $CAD 5.9%) reached record highs during the period. Equities advanced almost steadily after pivoting from a sharp selloff in early April that was triggered by U.S. President Donald Trump’s so-called “Liberation Day” tariff announcement. Trade policy uncertainty remained high throughout the period and geopolitical tensions flared up, especially concerning fears that Iran might block oil traffic through the Strait of Hormuz in reaction to the U.S. bombing of its nuclear facilities. However, equities continued to push to new highs right up to the final days of the quarter. As a result, most equity components of the portfolio gained ground.
The best performing components were the IG Mackenzie European Mid-Cap Equity Fund (11.8%) and the IG Mackenzie International Small Cap Fund (9.4%). However, together these funds comprise less than 4% of the portfolio and therefore had limited impact on overall results. The top-contributing segment was the Mackenzie – IG Canadian Equity Pool (8.7%), which outperformed the S&P/TSX Index mainly due to stock selection in the consumer discretionary and materials sectors. The BlackRock – IG Active Allocation Pool III (4.9%), of which equities typically comprise about 80%, was among the top contributors to returns, in part because it is the portfolio’s largest weight. The Mackenzie – IG Low Volatility U.S. Equity Pool (-7.8%) was the weakest performer and top detractor in the portfolio, as low-volatility equities underperformed non-low-volatility equities in all regions, especially in the U.S. The Aristotle – IG U.S. Small Cap Equity Pool also lost ground.
Global fixed income markets were mixed, with long-term government bonds in Canada and the U.S. losing ground, while short-term bonds and corporate bonds made gains. The FTSE Canada Universe Bond Index fell (-0.6%). As a result, the Mackenzie – IG Canadian Bond Pool (-0.4%), which comprises almost 10% of the portfolio, was among the portfolio’s top detractors. The Mackenzie Sovereign Bond Fund (-0.5%) and the two alternative investments exposures – the Mackenzie Global Macro Fund (-5.2%) and the Wellington – IG Global Equity Hedge Pool (-0.8%) – also lost ground. The Putnam – IG High Yield Income Pool (3.4%) was the best performing fixed income component, as high-yield bonds outperformed investment grade bonds, both corporate and sovereign.
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.
Investors are currently navigating a landscape dominated by unsettling headlines, from conflicts in the Middle East to persistent uncertainty around U.S. tariffs. The second quarter was a textbook example of headline-driven volatility. The tariff fog has prompted many companies to lower earnings forecasts, but the market’s ultimate resilience has proved once again that knee-jerk reactions to policy announcements are often premature.
While geopolitical shocks often trigger sharp initial declines, a focus on the underlying fundamentals reveals a more enduring picture. Despite short-term turbulence, global opportunities continue to emerge, and maintaining a long-term perspective is key to navigating current conditions and achieving growth.
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, 2025, 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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