Portfolio returns: Q1 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jul 11, 2022) |
IG Growth Portfolio – Global Balanced F | -4.11
| -0.91
| -0.91
| 12.32
| 11.71
| 11.84
| ||
Quartile rankings | 4 | 3 | 3 | 1 | 1 |
IG Growth Portfolio – Global Balanced Series F
Q1 commentary 2026
Highlights
① The portfolio declined during the quarter, as fixed income detracted.
② Canadian and developed market (EAFE) equities were the top contributors.
③ Global bonds detracted from returns.
Portfolio Overview
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 – Global Balanced generated a negative return this quarter as fixed income detracted.
The Mackenzie Canadian Equity Pool, the BlackRock-IG International Equity Pool and the JPMorgan – IG Emerging Markets Pool II 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 BlackRock-IG International Equity Pool generated a positive return. The JPMorgan - IG Emerging Markets Pool II generated a positive return and outperformed its benchmark this quarter. Security selection in the information technology sector and the consumer discretionary sector contributed to returns. Security selection in the financials sector detracted from returns.
The Putnam – IG U.S. Growth Pool, the Mackenzie US Equity Pool and the PIMCO – IG Global Bond Pool were the largest detractors. The Putnam - IG US Growth Pool generated a negative return but outperformed its benchmark this quarter. Security selection in the information technology sector was the largest contributor. An underweight allocation to the consumer staples sector was the largest detractor. The Mackenzie US 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. The PIMCO – IG Global Bond Pool generated a negative return.
Market overview: oil shock drove turbulence, commodities dominated inflation fears
The first quarter of 2026 began with supportive economic momentum; improving manufacturing, a stabilizing U.S. housing backdrop and contained inflation. However, this quickly pivoted as the conflict in the Middle-East involving Iran — along with trade disruption around the Strait of Hormuz — pushed energy commodities higher. The energy shock drove volatility across global equities, yet the underlying backdrop proved more resilient than headlines implied, reinforcing the value of diversification.
Canadian equities were resilient, as higher crude oil prices supported the energy sector and helped offset weaknesses in rate-sensitive areas. Defensive sectors, dividends and real-asset exposure provided additional insulation versus many global peers. U.S. fundamentals remained solid, but sentiment weakened as oil lifted inflation expectations. Investors rotated away from expensive, rate-sensitive growth stocks, making performance more about a valuation reset than deteriorating earnings.
Market outlook: positive on equities amid geopolitical tensions, neutral on bonds as rate paths diverge
Our outlook for equities remains constructive, supported by a resilient U.S. economy and improving global earnings momentum, despite recent volatility from Middle East tensions. While near-term market direction will depend on the economic impact of the conflict, we remain overweight equities in the absence of a clear deterioration in corporate earnings. We favour U.S. equities over Canadian equities, reflecting stronger growth and more supportive consumer dynamics. Structural advantages in productivity and sector composition continue to support U.S. earnings, while elevated household debt and housing headwinds weigh on Canada. We also see selective opportunities in developed international markets, such as Japan, supported by corporate governance reforms and attractive valuations.
In fixed income, we maintain a neutral duration stance. Resilient U.S. economic data may delay Federal Reserve rate cuts, while softer conditions in Canada increase the likelihood of earlier easing by the Bank of Canada. Elevated geopolitical risks and higher oil prices reinforce a measured approach to bond positioning.
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