IG Growth Portfolio – Canadian Equity Series F

Global markets delivered mixed results in Q1 2026, as resilient economic conditions were tempered by rising geopolitical risks, most notably the U.S.–Iran conflict. Equity performance diverged across regions: U.S. and European markets weakened, while select developed markets posted modest gains. Canadian equities outperformed, supported by strong energy and materials performance, whereas emerging markets lagged amid persistent economic and policy headwinds. A stronger U.S. dollar reduced non-U.S. returns for Canadian investors. Value stocks continued to outperform growth stocks globally and in North America, extending the trend from the prior quarter.

Commodity markets rose sharply, driven by geopolitical tensions. Oil prices surged on concerns over potential supply disruptions, particularly through the Strait of Hormuz. Gold also advanced, though with elevated volatility, supporting inflation-sensitive assets and contributing to sector dispersion.

Fixed income returns were mixed. Core government bonds were flat to weaker, as rising yields weighed on performance. In both the U.S. and Canada, elevated yields and shifting interest rate expectations limited duration returns, while credit markets outperformed on a relative basis.

The IG Growth Portfolio – Canadian Equity generated a positive return this quarter, led by Canadian equities.

The Mackenzie Canadian Equity Pool, the Mackenzie EAFE Equity Pool and the Mackenzie Emerging Markets Large Cap Fund were the largest contributors. The Mackenzie Canadian Equity Pool delivered strong positive returns, driven by an overweight position and effective security selection in energy, though an overweight in financials detracted modestly. The Mackenzie EAFE Equity Pool posted gains, benefiting from strong performance in the U.K. and Japan, with outperformance driven by security selection in France and Switzerland; an underweight in Japan detracted. The Mackenzie Emerging Markets Large Cap Fund delivered strong returns this quarter, benefitting from stock performance in Korea and Taiwan. The fund outperformed its benchmark, with strong security selection in China and India. Security selection in Brazil was the most significant detractor.

The  Mackenzie IG U.S. Equity Pool, the Mackenzie Enhanced Equity Risk Premia Fund and the Mackenzie US Quantitative Small Cap Fund were the largest detractors. The  Mackenzie IG U.S. Equity Pool finished the quarter lower but outperformed its benchmark. On a relative basis, security selection in the financials sector and an underweight allocation to the information technology sector contributed to returns. Security selection in the health care sector detracted from returns. 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 detracted from returns as U.S. equities declined. The Mackenzie US Quantitative Small Cap Fund generated a positive return, but underperformed its benchmark. Security selection in the consumer staples sector contributed to returns, while security selection in the information technology sector detracted from returns.