Portfolio returns: Q1 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. July 12, 2013 |
IG Core Portfolio – Growth F | -4.92
| -0.19
| -0.19
| 14.81
| 15.84
| 10.54
| 10.17
| 10.21
|
Quartile rankings | 2 | 2 | 2 | 2 | 2 | 1 | 2 |
IG Core Portfolio – Growth Series F
Q1 commentary 2026
Highlights
① The portfolio decreased slightly; gains from Canadian and select international equities were offset by significant U.S. large-cap weakness.
② Canadian equity strategies provided the strongest contributions, reflecting relative strength in domestic markets.
③ U.S. large-cap technology exposures detracted heavily, posting significant negative returns amid a sharp sell-off in mega-cap growth stocks.
Portfolio Overview
The IG Core Portfolio – Growth posted returns of -0.2% over the first quarter of 2026 and outperformed its global equity peer group median (-2.0%). As the portfolio's most equity-intensive mandate, performance was driven entirely by equity exposures, with Canadian equities serving as the largest positive contributor, reflecting both strong absolute returns and meaningful portfolio weight. U.S. equity allocations faced significant headwinds from weakness in large-cap technology stocks, which weighed heavily on results, given their substantial combined portfolio weight of over 40%. Select international equity exposures provided positive contributions, including gains from European, Pan-Asian and emerging market equity strategies. In aggregate, positive contributions from Canadian and select international holdings partially offset significant weakness in U.S. equity exposures.
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 emerged as the primary source of positive performance. The Mackenzie-IG Canadian Equity Pool delivered the strongest individual contribution, benefiting from broad-based gains across energy, materials and financial sectors. The Fidelity-IG Canadian Equity Pool made a substantial positive contribution, providing crucial offset to U.S. equity weakness. U.S. large-cap equity allocations were the most significant detractors, with the T. Rowe Price-IG and Mackenzie-IG U.S. Equity Pools both posting material negative returns, due to the sell-off in mega-cap technology stocks amid AI spending sustainability concerns. The Mackenzie US Mid Cap Opportunities Fund also detracted modestly.
International strategies delivered mixed but generally supportive results. The JPMorgan-IG Emerging Markets Pool II, BlackRock-IG Active Allocation Pool IV and BlackRock-IG International Equity Pool contributed positively. The IG Mackenzie Pan Asian Equity Fund added value, benefiting from strength in Japanese equities. However, the IG Mackenzie European Equity Fund detracted, as regional economic growth concerns weighed on continental markets, and the IG Mackenzie Global Fund detracted slightly. The Aristotle-IG U.S. Small Cap Equity Pool contributed modestly, as small-cap stocks demonstrated relative resilience.
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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