Portfolio returns: Q1 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. July 12, 2013 |
IG Core Portfolio – Balanced F | -3.45
| 0.38
| 0.38
| 10.46
| 10.14
| 6.69
| 6.67
| 7.00
|
Quartile rankings | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
IG Core Portfolio – Balanced Series F
Q1 commentary 2026
Highlights
① The portfolio increased, with broad positive contributions, especially from Canadian equities and international strategies, offset by weak U.S. equities.
② Canadian equity strategies were the primary drivers of performance.
③ U.S. large-cap exposures detracted significantly, as technology stocks retreated amid concerns over AI-related spending and elevated valuations.
Portfolio Overview
The IG Core Portfolio – Balanced rose by 0.4% over the first quarter of 2026 but underperformed its global neutral balanced peer group (1.2%.) Equities were the primary driver of performance, with Canadian equity exposures contributing most positively. Canadian equities were the largest single contributor, reflecting both strong absolute returns and meaningful portfolio weight. Select international equity exposures also added to results, including gains from European and emerging market equity strategies. Fixed income delivered modest overall results, with gains from select corporate credit and floating-rate strategies, offset by weakness in longer-duration government bond exposures. In aggregate, equity holdings more than offset weaker areas of the portfolio.
Market conditions were challenging during the first quarter of 2026. Global equity markets experienced elevated volatility, with divergent performance across regions. The S&P 500 Index declined 4.6% (in Canadian dollars), while the S&P/TSX Composite Index advanced approximately 2.6%, supported by resilient commodity prices and record gold prices. Fixed income markets faced headwinds from rising yields, as the escalating Middle East conflict and resulting oil price spike heightened inflation concerns. The U.S. Federal Reserve maintained its policy rate at 3.5%-3.75% throughout the quarter, while the Bank of Canada held its policy rate at 2.25%, both adopting wait-and-see stances. U.S. Treasury yields rose over the quarter, with the 10-year yield reaching roughly 4.35% by early April, while Canadian 10-year government bond yields also moved higher. Within this environment, Canadian equities benefited from energy and materials sector strength, with gold surging to record levels. Emerging market equity exposures also showed resilience. However, U.S. equities struggled amid technology sector weakness and geopolitical uncertainty, while global bond allocations faced pressure from rising yields and persistent inflation concerns linked to energy price volatility.
Canadian equities drove the positive performance, with the Mackenzie-IG Canadian Equity Pool as the top contributor, generating strong absolute returns. The Fidelity-IG Canadian Equity Pool and Mackenzie-IG Canadian Equity Income Pool also contributed positively. U.S. equity allocations were the most significant detractor, with the T. Rowe Price-IG and Mackenzie-IG U.S. Equity Pools posting negative returns, due to weakness in large-cap technology stocks. The Mackenzie US Mid Cap Opportunities Fund also detracted modestly.
International strategies delivered mixed results. The BlackRock-IG Active Allocation Pool II, JPMorgan-IG Emerging Markets Pool II and IG Mackenzie Pan Asian Equity Fund contributed positively. However, the PIMCO-IG Global Bond Pool detracted due to rising global bond yields, and the Mackenzie Global Macro Fund struggled with elevated volatility. Fixed income delivered modest results overall, with the Mackenzie-IG Canadian Bond Pool contributing marginally, while rising yields limited absolute returns across most categories.
Market overview: oil shock drove turbulence, commodities dominated inflation fears
The first quarter of 2026 began with supportive economic momentum; improving manufacturing, a stabilizing U.S. housing backdrop and contained inflation. However, this quickly pivoted as the conflict in the Middle-East involving Iran — along with trade disruption around the Strait of Hormuz — pushed energy commodities higher. The energy shock drove volatility across global equities, yet the underlying backdrop proved more resilient than headlines implied, reinforcing the value of diversification.
Canadian equities were resilient, as higher crude oil prices supported the energy sector and helped offset weaknesses in rate-sensitive areas. Defensive sectors, dividends and real-asset exposure provided additional insulation versus many global peers. U.S. fundamentals remained solid, but sentiment weakened as oil lifted inflation expectations. Investors rotated away from expensive, rate-sensitive growth stocks, making performance more about a valuation reset than deteriorating earnings.
Market outlook: diversification and flexibility remain central to portfolio construction
Looking ahead, oil and energy prices remain the central swing factor. A credible path to de-escalation could shift attention back to the positive economic cycle evident early in the quarter; a prolonged disruption would maintain inflation uncertainty and elevated volatility.
In this environment, commodity producers and value‑oriented equities may provide resilience, while long‑duration assets and oil‑importing regions face greater sensitivity to energy-price fluctuations.
Canadian equities offer exposure to energy and materials supported by global supply constraints. International developed and emerging markets present valuation‑driven opportunities and help diversify away from concentrated U.S. equity exposure.
Within fixed income, short‑ to intermediate-duration strategies can balance yield and interest‑rate risk, complemented by high‑quality corporate bonds for disciplined income generation. Key areas to watch will be central bank policies, as they look at the impact of higher energy costs and their indirect tax on the consumer.
To discuss your investment strategy, speak to your IG Advisor.
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