Portfolio returns: Q3 2025
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jul 12, 2013) |
IG Income Portfolio – Growth Plus Series F | 2.46
| 5.36 | 8.12 | 10.46 | 11.31 | 7.12 | 6.03 | 5.90 |
Quartile rankings | 3 | 2 | 3 | 3 | 3 | 2 | 2 |
IG Income Portfolio – Growth Plus Series F
Q3 commentary 2025
Highlights
① The portfolio gained during the quarter, supported by strong equity and fixed income performance.
② U.S. equities and financials drove maximum gains.
③ Corporate and government bond exposure, along with selection in financials and communications, supported returns.
Portfolio Overview
The portfolio was up in the quarter.
Equities exposure, represented by the portfolio’s 56% allocation to the Mackenzie Global Equity Income Fund, was the largest contributor to performance and outperformed its benchmark. Returns were driven by U.S. equity holdings, primarily through the fund’s 40% allocation to the S&P 500. Stock selection in financials was the largest contributor to outperformance, while materials and consumer staples also added meaningfully. Conversely, stock selection in and underperformance of information technology and industrials detracted modestly from performance. Dividend-paying stocks provided stable, income-driven gains that supported absolute performance but modestly lagged higher-growth equities during the quarter.
The Mackenzie Global Equity Income Fund also utilizes a stock options strategy to help preserve capital during times of severe equity market stress. As expected, the options strategy detracted from returns, as equity markets rallied; the opposite is expected when equity markets decline rapidly.
The Mackenzie Unconstrained Fixed Income Fund, representing 19% of the portfolio, was another positive contributor to performance. Relative to its benchmark, an underweight to government bonds, an overweight to corporate bonds and security selection within communication services and financials corporate bonds added value, as did hedged foreign currency exposure.
The Mackenzie Canadian Bond Fund, representing 14% of the portfolio, was another contributor to performance. The fund posted a positive return and outperformed its benchmark. An overweight to corporate bonds and security selection in government bonds were the major contributors to the performance.
The Mackenzie Sovereign Bond Fund, representing 8% of the portfolio, also contributed to the performance. The fund invests in 10-year government bonds and benefited from a decline in Canadian and U.S. yields.
The Mackenzie Gold Bullion Fund, representing 2% of the portfolio and held as an inflation-sensitive asset, performed extremely well this quarter, as the price of gold surged.
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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