Portfolio returns: Q3 2025
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jul 12, 2013) |
IG Growth Portfolio – Canadian Equity F | 5.00
| 11.18
| 17.99
| 22.99
| 21.48
| 14.78
| 10.26
| 10.12
|
Quartile rankings | 1 | 1 | 1 | 1 | 1 | 2 | 2 |
IG Growth Portfolio – Canadian Equity Series F
Q3 commentary 2025
Highlights
① The portfolio appreciated over the quarter, as Canadian equities gained.
② Canadian and U.S. equities led performance.
③ There were no detractors over the period.
Portfolio Overview
Global markets advanced in Q3 2025, fuelled by strength in AI-themed stocks, easing trade tensions and central bank rate cuts. The U.S. Federal Reserve and Bank of Canada each cut rates by 25 basis points (a quarter of a percentage point), citing slowing job growth. U.S. equities hit record highs, led by AI-technology and small-cap stocks. Canadian markets benefited from strength in materials, information technology and energy sector stocks. Emerging markets surged, fuelled by Chinese technology stocks and a weaker U.S. dollar. Gold rallied to historic highs, while oil prices dipped on soft demand and rising supply. Bond markets saw modest gains; high-yield bonds outpaced investment-grade bonds, with emerging market bonds another beneficiary of a softer U.S. dollar.
The IG Growth Portfolio – Canadian Equity generated a positive return this quarter. The portfolio’s exposure to Canadian equities was the leading contributor to returns, followed by U.S. equities.
The Mackenzie Canadian Equity Pool, the Mackenzie IG U.S. Equity Pool and the Mackenzie Enhanced Equity Risk Premia Fund were the largest contributors to portfolio returns. The Mackenzie Canadian Equity Pool generated a positive return, benefiting from a strong performance in materials and financials sector stocks. The pool outperformed its benchmark, aided by an underweight allocation to the industrials sector and security selection in financials and information technology sector stocks. The Mackenzie IG U.S. Equity Pool delivered strong returns, led by stocks in the information technology sector. The pool outperformed its benchmark, with security selection in the industrials and health care sectors as the leading contributors. 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.
There were no detractors over the quarter. The Mackenzie Enhanced Fixed Income Risk Premia Fund and Mackenzie Emerging Markets Large Cap Fund IG were the smallest contributors to portfolio returns. The Mackenzie Enhanced Fixed Income Risk Premia Fund is a levered alternative fixed income fund. The investment team uses the fund to efficiently manage total portfolio fixed income exposure. Falling bond yields led to rising bond prices and were beneficial to fixed income returns. The Mackenzie Emerging Markets Large Cap Fund IG delivered strong returns, led by strong equity market performance in China and Taiwan. The fund outperformed its benchmark, largely due to security selection in China and an underweight allocation to India.
Market overview: signs of optimism emerge, despite the noise during "Liberation Day" fallout
The third quarter delivered broad gains across asset classes, with market performance largely overriding a backdrop of cautious sentiment. Investors looked past persistent trade policy headlines, increasingly treating the U.S. administration's tariff policy as noise rather than a core risk. The primary catalysts for the positive performance were a subtle shift toward lower-interest-rate expectations and resilient corporate earnings.
Signals from the U.S. Federal Reserve of imminent rate cuts were followed by a quarter percentage cut in September. Government bond yields eased into the quarter's end, supporting bond prices, while corporate bonds outperformed government bonds.
Market outlook: Positive on equities, diversified globally, selective in bonds.
Our outlook for equities became positive in the period, as global markets proved resilient, with improving earnings revisions and stronger investor sentiment. We believe share valuations in Japan remain reasonable, and longer-term metrics suggest that developed international and emerging markets are more attractively valued than those in the United States and Canada.
We believe policy uncertainty and slower global growth are likely to cap inflation. Because tariff-related price increases appear transitory, we do not expect a lasting impact on fixed income investments. In Canada, we believe softer economic data has increased the likelihood of additional Bank of Canada policy rate cuts. In the United States, a more accommodative tone from the U.S. Federal Reserve and mounting fiscal and debt concerns led markets to price in further interest rate cuts into 2026, which we believe could pressure the U.S. dollar.
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 September 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.
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 September 30, 2025. 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.
©2025 IGWM Inc.