Portfolio returns: Q1 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. July 12, 2013 |
IG Core Portfolio – Income Balanced F | -3.17
| 0.43
| 0.43
| 9.39
| 9.31
| 5.86
| 6.35
| 6.56
|
Quartile rankings | 2 | 2 | 2 | 2 | 3 | 2 | 2 |
IG Core Portfolio – Income Balanced Series F
Q1 commentary 2026
Highlights
① The portfolio grew modestly this quarter, with Canadian equities and international exposures offsetting weak U.S. equities and fixed income.
② Canadian equity mandates provided the strongest support, led by several domestic funds, reflecting the relative strength of domestic markets.
③ U.S. equity allocations were the primary detractors, with several funds posting negative contributions.
Portfolio Overview
The IG Core Portfolio – Income Balanced posted a return of 0.66% over the first quarter of 2026 and outperformed it global neutral balanced peer group, which returned 0.02%. Performance was driven by a diversified set of contributors, with Canadian equities serving as the largest positive driver of total return, given both their strong absolute results and meaningful portfolio weights. The Mackenzie-IG Canadian Equity Income Pool was the strongest individual contributor, adding 0.33%, followed by the Mackenzie-IG Canadian Equity Pool at 0.22%, the BlackRock-IG Active Allocation Pool I at 0.17% and the JPMorgan-IG Emerging Markets Pool II at 0.11%. Additional support came from the Fidelity-IG Canadian Equity Pool, IG Mackenzie Pan Asian Equity Fund and IG Mackenzie Real Property Fund. In aggregate, positive contributions from Canadian equities, active allocation, emerging markets and selected international strategies more than offset weakness in U.S. equities, global bonds and alternative-oriented mandates.
Market conditions were mixed during the quarter. Global equity markets experienced elevated volatility, while fixed income markets faced pressure from rising yields and persistent inflation concerns. Geopolitical tensions in the Middle East and higher oil prices created a supportive backdrop for commodity-sensitive equity markets such as Canada, but a more challenging one for traditional global bond mandates. The U.S. Federal Reserve maintained its policy rate at 3.5%-3.75%, while the Bank of Canada held its policy rate at 2.25%. 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 backdrop, Canadian and emerging equity strategies generally benefited from stronger regional and sector leadership, while parts of the U.S. equity market and global fixed income universe struggled.
Canadian equities emerged as the primary source of positive performance. The Mackenzie-IG Canadian Equity Income Pool delivered the strongest contribution to total return, while the Mackenzie-IG Canadian Equity Pool and Fidelity-IG Canadian Equity Pool also added meaningfully. This strength was broadly consistent with the relative resilience of the Canadian market during the quarter, supported by energy and commodity-linked sectors. The BlackRock-IG Active Allocation Pool I also contributed positively, reflecting supportive regional positioning across non-U.S. equities and Asia earlier in the quarter, followed by a more constructive U.S. equity tilt later in the period. International and emerging market exposures added further support, with the JPMorgan-IG Emerging Markets Pool II, IG Mackenzie Pan Asian Equity Fund and BlackRock-IG International Equity Pool all contributing positively, although the IG Mackenzie European Equity Fund detracted modestly.
U.S. equity allocations were the most significant detractor from performance. The Mackenzie-IG U.S. Equity Pool subtracted 0.13% from total return, while the T. Rowe Price-IG U.S. Equity Pool detracted 0.1%, reflecting weakness in large-cap U.S. equities during the quarter. The Mackenzie U.S. Mid Cap Opportunities Fund also detracted 0.05%. More broadly, U.S. equity weakness was concentrated in large-cap technology and other growth-oriented sectors, which came under pressure as investors questioned the sustainability of AI-related spending and valuations. Fixed income and alternative-oriented sleeves were also mixed. The PIMCO-IG Global Bond Pool detracted 0.05%, while the Mackenzie Global Macro Fund detracted 0.04%, reflecting the difficult environment for global duration and macro positioning as yields rose. By contrast, more defensive income-oriented exposures, such as the IG Mackenzie Real Property Fund, IG Mackenzie Mortgage and Short-Term Income Fund and the Mackenzie-IG Canadian Bond Pool, provided modest positive contributions, helping support overall portfolio stability.
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.
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 March 31, 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.
This commentary may contain forward-looking information which reflects our or third-party current expectations or forecasts of future events. Forward-looking information is inherently subject to, among other things, risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed herein. These risks, uncertainties and assumptions include, without limitation, general economic, political and market factors, interest and foreign exchange rates, the volatility of equity and capital markets, business competition, technological change, changes in government regulations, changes in tax laws, unexpected judicial or regulatory proceedings and catastrophic events. Please consider these and other factors carefully and do not place undue reliance on forward-looking information. The forward-looking information contained herein is current only as of March 31, 2026. There should be no expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.
This commentary is published by IG Wealth Management. It represents the views of our Portfolio Managers and is provided as a general source of information. It is not intended to provide investment advice or as an endorsement of any investment. Some of the securities mentioned may be owned by IG Wealth Management or its mutual funds, or by portfolios managed by our external advisors. Every effort has been made to ensure that the material contained in the commentary is accurate at the time of publication, however, IG Wealth Management cannot guarantee the accuracy or the completeness of such material and accepts no responsibility for any loss arising from any use of or reliance on the information contained herein.
Trademarks, including IG Wealth Management and IG Private Wealth Management, are owned by IGM Financial Inc. and licensed to subsidiary corporations.
©2026 IGWM Inc.