Portfolio returns: Q3 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jul 12, 2013) |
IG Growth Portfolio – Global Equity Balanced F | 0.12
| 0.68
| 12.84
| 15.41
| 20.13
| 10.94
| 9.16
| 8.92
|
Quartile rankings | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
IG Growth Portfolio – Global Equity Balanced Series F
Q3 commentary 2026
Highlights
① The portfolio appreciated over the quarter, as equities led returns.
② U.S. equities and liquid alternatives were the largest contributors to returns.
③ U.S. small-cap equities and fixed income alternatives detracted from returns.
Portfolio Overview
Global markets navigated a volatile third quarter, as resilient economic activity and corporate earnings competed with persistent inflation, geopolitical tensions and trade uncertainty. U.S. spending and investment remained firm, while elevated inflation prompted the U.S. Federal Reserve to raise its policy rate by 25 basis points (a quarter of a percentage point) in September. In Canada, economic activity improved following earlier weakness, while the Bank of Canada held its policy rate at 2.25%.
Equities advanced despite rising bond yields. U.S. stocks reached record highs, supported by resilient earnings, although market leadership remained concentrated. Canadian equities also gained, helped by strength in energy shares, as oil prices rose, while performance across international markets was mixed.
Fixed income faced pressure, as persistent inflation, higher energy prices, policy tightening and heavy sovereign issuance pushed yields higher. U.S. Treasury yields rose significantly, weighing on government bonds. Canadian bonds also declined, as Government of Canada yields increased materially across the curve despite an unchanged policy rate, while credit markets proved comparatively resilient.
The IG Growth Portfolio – Global Equity Balanced generated a positive return this quarter.
The Mackenzie IG U.S. Equity Pool, Mackenzie Broad Risk Premia Collection Fund and Mackenzie Canadian Equity Pool were the largest contributors. The Mackenzie IG U.S. Equity Pool modestly underperformed its benchmark. An underweight allocation and weaker security selection in information technology detracted from relative performance, while security selection in health care and financials also weighed on results. Conversely, allocation effects in industrials and utilities contributed modestly. The Mackenzie Broad Risk Premia Collection Fund (an alternative strategy fund that combines equity exposure with multiple alternative strategies in a capital-efficient manner) contributed positively to returns, led by strong performances from its FX timing and cross-sectional equity strategies. The Mackenzie Canadian Equity Pool outperformed its benchmark, primarily due to strong security selection in the energy and industrial sectors. An underweight allocation to industrials and communication services also contributed positively to relative performance. Conversely, security selection in materials was the largest detractor, while an overweight allocation to financials also weighed on returns.
The Mackenzie US Quantitative Small Cap Fund, Mackenzie Enhanced Fixed Income Risk Premia Fund and PIMCO IG Global Bond Pool were the largest detractors. The Mackenzie US Quantitative Small Cap Fund underperformed its benchmark, primarily due to weak security selection in health care, information technology and industrials. Security selection in financials and materials also detracted. Conversely, an overweight allocation to energy contributed positively, supported by strong security selection within the sector. The Mackenzie Enhanced Fixed Income Risk Premia Fund (a levered alternative fixed income fund used to efficiently manage total portfolio exposure) detracted, as increasing bond yields led to falling bond prices, pressuring fixed income returns.
Market overview: earnings growth provided a powerful tailwind for equities
The third quarter showed that the current business cycle still has support, but risks have shifted. Growth held up, earnings improved and corporate investment remained firm, but higher oil prices, persistent inflation and rising long-term yields made the path forward less certain. Equities advanced as earnings provided fundamental support, even as higher rates raised the bar for further gains.
Canadian equities benefited from gains in resources and financials. Higher oil prices supported energy, while precious-metals companies were among the strongest performers. Bank earnings were supported by capital-markets activity, trading income and contained credit costs. U.S. equities also advanced, supported by strong earnings and continued technology investment. Higher yields weighed on more rate-sensitive areas.
International markets remained constructive overall, with parts of Asia benefiting from continued demand across the AI technology supply chain. Fixed income faced greater pressure as rising government bond yields outweighed coupon income, while credit remained comparatively resilient. Across markets, the central tension increasingly became earnings strength versus higher inflation and interest rates.
Market outlook: equities remain attractive while higher yields improve the case for duration
We remain overweight equities and sovereign bond duration. Equities continue to offer the most attractive opportunity among major asset classes, as elevated oil prices and yields have yet to materially weigh on earnings. At the same time, higher global yields, driven by rising real yields rather than longer-term inflation expectations, have improved the appeal of duration.
Within equities, we remain underweight Canada, where trade uncertainty with the U.S. and elevated financial-sector valuations remain headwinds. We favour developed Asia, particularly Japan, where attractive valuations and continued AI hardware spending are supportive, and maintain an overweight position to U.S. small-caps, although conviction has been trimmed following strong performance. In currencies, the recent Canadian dollar sell-off has improved its valuation against the U.S. dollar, with elevated oil prices providing additional support. We also continue to favour the Japanese yen, which remains the most undervalued G7 currency.
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