Portfolio returns: Q3 2025
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jul 11, 2022) |
IG Growth Portfolio – Global Balanced F | 3.46
| 6.73
| 11.65
| 14.04
| 15.40
| 13.53
| ||
Quartile rankings | 1 | 1 | 1 | 1 | 1 |
IG Growth Portfolio – Global Balanced Series F
Q3 commentary 2025
Highlights
① The portfolio appreciated during the quarter, led by strong global equity returns.
② U.S. equities were the top contributors to returns.
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 – Global Balanced generated a positive return this quarter. The portfolio’s equity allocation was the leading contributor to portfolio returns, followed by fixed income.
The Mackenzie Canadian Equity Pool, the Mackenzie US Equity Pool and the Putnam - IG U.S. Growth Pool were the leading contributors to 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 US 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 Putnam - IG US Growth Pool generated strong absolute returns, led by the information technology sector. Security selection in the communication services and the consumer discretionary sectors detracted from relative performance. Security selection in information technology stocks was a leading contributor to relative returns.
There were no detractors this quarter. The Mackenzie North American Corporate Bond IG and the Mackenzie Enhanced Fixed Income Risk Premia Fund IG were the smallest contributors to portfolio returns. The Mackenzie North American Corporate Bond IG outperformed its benchmark, benefiting from security selection in communication services sector corporate bonds and portfolio fixed income management. The Mackenzie Enhanced Fixed Income Risk Premia Fund IG 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.
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.
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