Portfolio returns: Q4 2025
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. July 12, 2013 |
IG Core Portfolio – Income Plus F | -0.42
| 1.24
| 9.79
| 9.79
| 9.00
| 4.47
| 4.57
| 4.58
|
Quartile rankings | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
IG Core Portfolio – Income Plus Series F
Q4 commentary 2025
Highlights
① The portfolio appreciated during the quarter, led predominantly by strong equity performance.
② Canadian and developed market equities were the top contributor to returns.
③ Canadian bonds detracted from returns.
Portfolio Overview
Global markets advanced in Q4 2025, as easing inflation and improving earnings expectations supported investor confidence. Regional equity performance diverged, with developed markets in Europe and Japan posting solid gains, while emerging markets were mixed. Korean equities outperformed, while Chinese equities lagged amid ongoing economic and policy challenges. Canadian equities outperformed U.S. markets, supported by a cyclical sector mix and improving global risk appetite. A weaker U.S. dollar further supported non‑U.S. and emerging market assets. Value outperformed growth globally, and large caps outperformed small caps. Commodities were mixed, with gains in gold offset by lower oil prices. Fixed income delivered modest gains, supported by resilient credit conditions, while Canadian government and inflation‑linked bonds lagged as domestic yields remained relatively firm.
The IG Core Portfolio – Income Plus generated a positive return, led by equities, followed by fixed income, while real property slightly detracted.
The Mackenzie Canadian Equity Pool, the Mackenzie EAFE Equity Pool and the Mackenzie Enhanced Equity Risk Premia Fund were the largest contributors to performance.
The Mackenzie Canadian Equity Pool generated a positive return, benefiting from a strong performance in financials and materials sector stocks. The pool outperformed its benchmark, aided primarily by security selection in materials and energy sector stocks. Security selection of stocks in the consumer discretionary sector was a slight detractor. The Mackenzie EAFE Equity Pool was a strong performer, benefiting from a strong performance in the United Kingdom and Switzerland. On a relative basis, security selection and an underweight allocation to Japan were the leading detractors. Conversely, security selection in German stocks and overweight allocations to Korea and Austria were the leading contributors to relative performance. The Mackenzie Enhanced Equity Risk Premia Fund is a levered equity fund. The investment team uses leverage to manage total portfolio equity exposure in a capital-efficient way. The fund contributed to returns as broad equity markets appreciated.
The Mackenzie – IG Canadian Bond Pool was the largest detractor, followed by the IG Mackenzie Real Property Fund. The Mackenzie - IG Canadian Bond Pool generated a negative return this quarter but outperformed its benchmark. The outperformance was led by duration management and security selection in government bonds. The selection of corporate bonds was a detractor. The IG Mackenzie Real Property Fund posted a slightly negative return, due to weaker office property performance, which pressured property valuations. This was partially offset by strong income and occupancy from industrial, retail and multi-family properties.
Market overview: global growth strengthened, inflation eased, policy supportive
Markets ended the fourth quarter of 2025 on a strong note, capping a year defined by resilience and broad-based gains. Equities led performance, as investors looked beyond policy noise and focused on improving fundamentals. Global markets advanced, supported by steady corporate earnings, easing inflation pressures and a clear shift toward lower interest rates. Canada outperformed most developed peers, driven by strength in materials and financials, while European and Asian markets rebounded on firmer trade activity and renewed investor confidence. In the U.S., equity performance remained positive, led by technology and communication services, with improving breadth across sectors signalling a healthier market foundation.
Fixed income delivered modest but positive returns, as central banks continued to ease policy. Government yields declined on the short end while longer maturities remained stable, allowing coupon income to drive returns. Credit conditions stayed firm, underscoring the strength of corporate balance sheets entering 2026.
Market outlook: positive on equities, diversified globally, selective in bonds
Our outlook for equities in 2026 remains positive, supported by strong corporate earnings and a resilient U.S. economy. However, we expect higher volatility than in 2025, as the second year of a U.S. presidential term has historically been more volatile. Within equities, we have increased our allocation to Canadian stocks, supported by resilient economic data and upward earnings revisions. We continue to find attractive valuations in Japan, while in the U.S. we have shifted to a neutral stance, due to elevated valuations in certain sectors.
In fixed income, we remain neutral on duration, as markets are already pricing in roughly two rate cuts for 2026, which we view as fair. We are also monitoring market reactions ahead of the announcement of the next U.S. Federal Reserve Chair.
In currencies, our long-term view is for the U.S. dollar to depreciate against major currencies, including the euro and Japanese yen.
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