Portfolio returns: Q4 2025
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jul 12, 2013) |
IG Income Portfolio – Growth Plus Series F | -0.21
| 2.02 | 10.30 | 10.30 | 10.55 | 6.68 | 6.10 | 5.95 |
Quartile rankings | 1 | 1 | 2 | 2 | 3 | 2 | 2 |
IG Income Portfolio – Growth Plus Series F
Q4 commentary 2025
Highlights
① The portfolio gained during the quarter, supported by a strong equity performance.
② Canadian equities, especially financials and health care stocks, drove performance.
③ Gold performed extremely well during the quarter, helping support overall portfolio performance through diversification and strong returns.
Portfolio Overview
The portfolio was up in the quarter.
Equities exposure, represented by the portfolio’s 57% allocation to the Mackenzie Global Equity Income Fund, was the largest contributor to performance and outperformed its benchmark. Returns were driven by Canadian equity holdings. Stock selection in financials and materials was the largest contributor to outperformance, while being overweight in information technology added value. Conversely, stock selection in health care detracted modestly from the relative performance. Dividend-paying sectors, such as financials, energy, utilities and consumer staples, generally performed relatively well, supported by stable cash flows and income demand in a volatile market.
The Mackenzie Global Equity Income Fund uses 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 the topmost fixed income positive contributor to performance. Performance benefited from being overweight in select credit sectors and active duration positioning relative to the benchmark. However, being underweight in longer-duration federal and provincial government bonds detracted from relative performance.
The Mackenzie Canadian Bond Fund, representing 14% of the portfolio, was a detractor to performance. Performance benefited from being overweight in shorter-duration government bonds and select non-financial corporates. Being underweight in longer-duration federal and provincial bonds contributed to relative underperformance.
The Mackenzie Sovereign Bond Fund, representing 8% of the portfolio also detracted from the performance. The fund posted a negative return, as exposure to 10-year government bonds detracted amid rising yields during Q4 2025, despite some benefit late in the quarter from easing Canadian and U.S. yields.
The Mackenzie Gold Bullion Fund, representing 2% of the portfolio, performed strongly, as gold did extremely well amidst geopolitical uncertainty, a softer U.S. dollar and strong investor demand.
Market overview: global growth strengthened, inflation eased, policy supportive
Markets ended the fourth quarter of 2025 on a strong note, capping a year defined by resilience and broad-based gains. Equities led performance, as investors looked beyond policy noise and focused on improving fundamentals. Global markets advanced, supported by steady corporate earnings, easing inflation pressures and a clear shift toward lower interest rates. Canada outperformed most developed peers, driven by strength in materials and financials, while European and Asian markets rebounded on firmer trade activity and renewed investor confidence. In the U.S., equity performance remained positive, led by technology and communication services, with improving breadth across sectors signalling a healthier market foundation.
Fixed income delivered modest but positive returns, as central banks continued to ease policy. Government yields declined on the short end while longer maturities remained stable, allowing coupon income to drive returns. Credit conditions stayed firm, underscoring the strength of corporate balance sheets entering 2026.
Market outlook: positive on equities and diversified globally.
Our outlook for equities in 2026 remains positive, supported by strong corporate earnings and a resilient U.S. economy. However, we expect higher volatility than in 2025, as the second year of a U.S. presidential term has historically been more volatile. Within equities, performance reflected returns from underlying regional equity funds, with contributions driven by sector and stock selection within those mandates. The Canadian economy is expected to remain resilient in 2026, supported by steady labour market conditions and the potential for interest rate cuts.
Fixed income markets continued to price in potential rate cuts in 2026, while attention remained on broader policy developments, including the upcoming U.S. Federal Reserve Chair announcement.
In currencies, our long-term view is for the U.S. dollar to depreciate against major currencies.
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