Portfolio returns: Q1 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jul 12, 2013) |
IG Income – Series F | -2.29 | 1.09 | 1.09 | 7.61 | 7.35 | 4.27 | 4.32 | 4.40 |
Quartile rankings | 1 | 1 | 1 | 2 | 2 | 2 | 2 |
IG Income Portfolio 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 34% 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 sectors of energy, materials and industrials generally performed relatively well, 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 21% 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 posted a slightly positive return, representing 12% of the portfolio, 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 Mackenzie Unconstrained Fixed Income Fund, representing 29% 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.
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