Portfolio returns: Q4 2025
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jul 12, 2013) |
IG Growth Portfolio – Canadian Equity F | 0.38
| 4.44
| 23.24
| 23.24
| 20.12
| 14.01
| 10.57
| 10.29
|
Quartile rankings | 2 | 2 | 1 | 1 | 1 | 2 | 2 |
IG Growth Portfolio – Canadian Equity Series F
Q4 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 delivered positive returns in Q4 2025, as easing inflation and stable financial conditions, coupled with broadly supportive corporate results, helped maintain investors’ risk-on sentiment. Equity performance was positive across most regions, with a few exceptions, such as China, which lagged amid ongoing economic and policy challenges. Canadian equities outperformed U.S. markets, supported by a strong performance in cyclical sectors, including materials, financials and consumer discretionary, reflecting continued global risk appetite. The Canadian dollar strengthened against major currencies, resulting in lower unhedged returns for Canadian investors. Lower-priced, value-oriented companies outperformed high-growth companies across global and North American markets. In commodities, gold and silver performed exceptionally well amid lingering macroeconomic and geopolitical risks and strong investor demand, while oil prices declined on concerns over excess supply. In fixed income, U.S. bond markets delivered modest gains supported by income and stable credit conditions, while Canadian bond returns faced modest price pressure, as yields rose earlier in the period.
The IG Growth Portfolio – Canadian Equity generated a positive return this quarter, led by Canadian equities, followed by U.S. equities.
The Mackenzie Canadian Equity Pool, the Mackenzie Enhanced Equity Risk Premia Fund and the Mackenzie IG U.S. Equity Pool were the largest contributors. The Mackenzie Canadian Equity Pool delivered a positive return, supported by a strong performance in financials and materials. It outperformed its benchmark, aided by security selection in materials and energy, while consumer discretionary detracted slightly. The Mackenzie Enhanced Equity Risk Premia Fund, which uses a levered equity strategy to manage portfolio exposure efficiently, contributed as broad equity markets appreciated. The Mackenzie IG U.S. Equity Pool delivered strong absolute returns, driven by health care. On a relative basis, it slightly underperformed its benchmark, with security selection in information technology detracting, while an overweight allocation and security selection in health care contributed most.
There were no detractors over the period. The Mackenzie US Quantitative Small Cap Fund was the smallest contributor, followed by the Mackenzie Enhanced Fixed Income Risk Premia Fund. The Mackenzie US Quantitative Small Cap Fund generated a positive return, benefiting from strong health care performance. It outperformed its benchmark with a strong security selection across most sectors, except information technology and communication services, which detracted. The Mackenzie Enhanced Fixed Income Risk Premia Fund, a levered alternative fixed income strategy, helped manage portfolio exposure efficiently. Falling global bond yields boosted bond prices, supporting fixed income returns.
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 and EAFE and maintain a neutral view for the U.S.
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.
To discuss your investment strategy, speak to your IG Advisor.
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