Portfolio returns: Q1 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jul 12, 2013) |
IG Income Portfolio – Growth Series F | -2.43 | 1.55 | 1.55 | 10.11 | 9.01 | 5.87 | 5.53 | 5.31 |
Quartile rankings | 1 | 1 | 1 | 2 | 3 | 2 | 3 |
IG Income Portfolio – Growth Series F
Q1 commentary 2026
Highlights
① The portfolio delivered a positive return in Q1 2026, supported by both equities and fixed income performance, despite market volatility.
② Equities were a key contributor, driven by Canadian holdings and strength in financials, technology, and energy.
③ Fixed income contributed positively, led by Canadian government bonds and credit exposure.
Portfolio Overview
The portfolio was up in the quarter.
Equity exposure, represented by the portfolio’s 50% 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 information technology was the largest contributor to outperformance, while overweight in energy added value. Dividend-paying sector performance was mixed, with energy and materials sectors performing relatively well for the quarter, supported by stable cash flows and income demand in a volatile market. Security selection in an overweight allocation to Canadian securities contributed to the performance.
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 contributed to the returns, as equity markets declined (the opposite is expected when equity markets rally).
The Mackenzie Canadian Bond Fund, representing 16% of the portfolio, was a major contributor to performance. The fund posted a slightly positive return, supported by exposure to Government of Canada bonds in a relatively stable interest rate environment. Federal and provincial bond holdings contributed positively; however, this was partially offset by weaker relative performance in corporate bonds and positioning for lower yields, which detracted during periods of rising rates over the quarter.
The Mackenzie Sovereign Bond Fund, representing 9% of the portfolio, posted a slightly positive return, as exposure to 10-year Government of Canada bonds benefited from broadly stable to modestly lower yields over the quarter. Although yields rose mid-quarter, creating some volatility, this was partially offset by a decline toward quarter-end.
The Mack Unconstrained Fixed Income Fund, representing 22% of the portfolio, was the only detractor, posting a negative return despite outperforming its benchmark. Performance was primarily impacted by positioning for lower yields, which detracted during periods of rising rates, while government bonds and energy corporates contributed to relative outperformance.
The Mackenzie Gold Bullion Fund, representing 2% of the portfolio, performed strongly. Gold posted a positive return in the quarter but was highly volatile. Prices were supported early in the quarter by safe-haven demand amid escalating geopolitical tensions. However, gold declined later in the quarter as higher oil prices, rising inflation expectations and increased interest rates weighed on prices.
Market overview: oil shock drove turbulence, commodities dominated inflation fears
The first quarter of 2026 began with supportive economic momentum; improving manufacturing, a stabilizing U.S. housing backdrop and contained inflation. However, this quickly pivoted as the conflict in the Middle-East involving Iran — along with trade disruption around the Strait of Hormuz — pushed energy commodities higher. The energy shock drove volatility across global equities, yet the underlying backdrop proved more resilient than headlines implied, reinforcing the value of diversification.
Canadian equities were resilient, as higher crude oil prices supported the energy sector and helped offset weaknesses in rate-sensitive areas. Defensive sectors, dividends and real-asset exposure provided additional insulation versus many global peers. U.S. fundamentals remained solid, but sentiment weakened as oil lifted inflation expectations. Investors rotated away from expensive, rate-sensitive growth stocks, making performance more about a valuation reset than deteriorating earnings.
Market outlook: positive on equities amid geopolitical tensions, neutral on bonds as rate paths diverge
Our outlook for equities remains constructive, supported by a resilient U.S. economy and improving global earnings momentum, despite recent volatility from Middle East tensions. While near-term market direction will depend on the economic impact of the conflict, we remain overweight equities in the absence of a clear deterioration in corporate earnings. We favour U.S. equities over Canadian equities, reflecting stronger growth and more supportive consumer dynamics. Structural advantages in productivity and sector composition continue to support U.S. earnings, while elevated household debt and housing headwinds weigh on Canada. We also see selective opportunities in developed international markets, such as Japan, supported by corporate governance reforms and attractive valuations.
In fixed income, we maintain a neutral duration stance. Resilient U.S. economic data may delay Federal Reserve rate cuts, while softer conditions in Canada increase the likelihood of earlier easing by the Bank of Canada. Elevated geopolitical risks and higher oil prices reinforce a measured approach to bond positioning.
To discuss your investment strategy, speak to your IG Advisor.
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 March 31, 2026, 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.
This commentary may contain forward-looking information which reflects our or third-party current expectations or forecasts of future events. Forward-looking information is inherently subject to, among other things, risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed herein. These risks, uncertainties and assumptions include, without limitation, general economic, political and market factors, interest and foreign exchange rates, the volatility of equity and capital markets, business competition, technological change, changes in government regulations, changes in tax laws, unexpected judicial or regulatory proceedings and catastrophic events. Please consider these and other factors carefully and do not place undue reliance on forward-looking information. The forward-looking information contained herein is current only as of March 31, 2026. There should be no expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.
This commentary is published by IG Wealth Management. It represents the views of our Portfolio Managers and is provided as a general source of information. It is not intended to provide investment advice or as an endorsement of any investment. Some of the securities mentioned may be owned by IG Wealth Management or its mutual funds, or by portfolios managed by our external advisors. Every effort has been made to ensure that the material contained in the commentary is accurate at the time of publication, however, IG Wealth Management cannot guarantee the accuracy or the completeness of such material and accepts no responsibility for any loss arising from any use of or reliance on the information contained herein.
Trademarks, including IG Wealth Management and IG Private Wealth Management, are owned by IGM Financial Inc. and licensed to subsidiary corporations.
©2026 IGWM Inc.