Portfolio returns: Q3 2025
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jul 12, 2013) |
IG Growth Portfolio – Global Equity F | 4.67
| 9.92
| 14.36
| 20.09
| 23.34
| 13.38
| 10.75
| 11.18
|
Quartile rankings | 2 | 1 | 2 | 1 | 1 | 1 | 2 |
IG Growth Portfolio – Global Equity 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 Equity generated a positive return this quarter. The portfolio’s U.S. equity allocation was the leading contributor to portfolio returns.
The Mackenzie IG U.S. Equity Pool, the Mackenzie Comprehensive Equity Pool and the Mackenzie Enhanced Equity Risk Premia Fund IG were the largest contributors to portfolio returns. The Mackenzie IG U.S. 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 the health care sectors as the leading contributors. The Mackenzie Comprehensive Equity Pool, providing multi-strategy exposure to global equities, had a solid quarter and outperformed against its benchmark. Security selection in the U.S. and an overweight allocation to Canada were leading contributors. The Mackenzie Enhanced Equity Risk Premia Fund IG is a levered equity fund. The investment team uses leverage to manage total portfolio equity exposure in a capital-efficient way. The fund contributed to returns, as broad equity markets appreciated.
There were no detractors this quarter. The Mackenzie Enhanced Fixed Income Risk Premia Fund IG and the JPMorgan IG Emerging Markets Pool II were the smallest contributors to portfolio returns. 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. The JPMorgan IG Emerging Markets Pool II benefited from a strong performance in emerging market equities over the period.
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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Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus and speak to an IG Advisor before investing. The rate of return is the historical annual compounded total return as of September 30, 2025, including changes in value and reinvestment of all dividends or distributions. It does not take into account sales, redemption, distribution, optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, values change frequently and past performance may not be repeated. Mutual funds and investment products and services are offered through the Mutual Fund Division of IG Wealth Management Inc. (in Quebec, a firm in financial planning). And additional investment products and brokerage services are offered through the Investment Dealer, IG Wealth Management Inc. (in Quebec, a firm in financial planning), a member of the Canadian Investor Protection Fund.
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