Portfolio returns: Q3 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jul 12, 2013) |
IG Income Portfolio – Growth Plus Series F | -0.58 | -0.72 | 8.39 | 10.58 | 12.66 | 7.18 | 6.14 | 6.25 |
Quartile rankings | 2 | 2 | 1 | 1 | 2 | 2 | 2 |
IG Income Portfolio – Growth Plus Series F
Q3 commentary 2026
Highlights
① The portfolio generated a negative return in Q3 2026, while positive global equity and gold contributions partially offset fixed-income weakness.
② Equities were the largest positive contributor supported by information technology, energy and health care holdings.
③ Rising government bond yields weighed on Canadian and global fixed income, while gold provided a positive contribution.
Portfolio Overview
The portfolio generated a negative return during the quarter.
Equity exposure, represented by the portfolio’s approximately 58% allocation to the Mackenzie Global Equity Income Fund, was the largest positive contributor. The underlying fund generated a positive return but underperformed its blended benchmark. Information technology was the largest contributor to absolute performance, followed by energy and health care, while financials and consumer discretionary detracted. Regionally, U.S. equities provided the largest positive contribution, while Canadian holdings weighed on returns. Strong relative performance in industrials partly offset weaker selection in financials and energy. Dividend-paying sectors delivered mixed results, with energy supporting absolute performance while financials detracted.
The Mackenzie Global Equity Income Fund also uses a stock options strategy to help preserve capital during times of severe equity market stress. Although the strategy can detract when equity markets advance and provide protection when markets decline, the options positions made a positive net contribution to returns this quarter, as gains on written calls more than offset losses on protective puts.
The Mackenzie Sovereign Bond Fund, representing approximately 8% of the portfolio, generated a negative return but outperformed its benchmark. Government bonds, particularly Canadian federal securities, were the largest detractors to absolute performance, as yields rose. Favourable government-bond positioning supported relative performance, partially offset by negative contributions from futures and currency forwards.
The Mackenzie Unconstrained Fixed Income Fund, representing approximately 18% of the portfolio, also generated a negative return but outperformed its benchmark. Government and corporate bonds weighed on absolute returns, with losses in government securities particularly significant. Relative outperformance benefited from interest-rate positioning, corporate-bond attribution and bank-loan exposure, while currency forwards detracted.
The Mackenzie Canadian Bond Fund, representing approximately 13% of the portfolio, was the largest fixed-income detractor and generated a negative return, slightly underperforming its benchmark. Federal and provincial government bonds accounted for most of the absolute losses, as yields increased, while corporate bonds also detracted. Provincial government-bond positioning supported relative performance, partially offset by weaker corporate-bond attribution and federal-bond positioning.
The Mackenzie Gold Bullion Fund, representing approximately 2% of the portfolio, contributed positively, as gold gained during the quarter, providing a modest offset to fixed-income weakness.
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 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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