Portfolio returns: Q2 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jul 13, 2015) |
IG Low Volatility Portfolio – Balanced F | 1.99
| 9.86
| 10.86
| 19.81
| 15.73
| 9.92
| 8.80
| 8.08
|
Quartile rankings | 2 | 3 | 2 | 2 | 2 | 1 | 2 |
IG Low Volatility Portfolio – Balanced Series F
Q2 commentary 2026
Highlights
① The portfolio gained during the quarter, supported by positive returns across all underlying funds and broad-based strength in global equities and fixed income.
② Canadian equities were the top contributors, led by industrials and financials.
③ Fixed income benefited from corporate credit exposure and security selection across government and corporate bonds.
Portfolio Overview
Global equities surged in the second quarter, driven by the AI infrastructure boom and de-escalating geopolitical tensions. Emerging and developed markets saw gains, propelled by information technology, particularly semiconductors. Canadian equities lagged global peers; however, strong financial sector performance offset declines in energy and materials. A stronger U.S. dollar made U.S. assets more attractive for Canadian investors. Globally, growth outperformed value.
Commodity markets reversed as geopolitical risk premiums faded. Oil plunged as Middle East conflicts de-escalated, easing supply fears. Gold and Bitcoin also suffered pullbacks, losing support amid sticky inflation and hawkish central bank outlooks.
Low-volatility equities in the U.S. and Canada delivered resilient relative performance, with utilities and consumer staples benefiting from investors' preference for defensive, stable earnings amid elevated geopolitical and macroeconomic uncertainty.
Fixed income saw modest returns amid shifting monetary policy. Core government bonds were flat as the U.S. Federal Reserve’s hawkish tone on persistent inflation prompted markets to reprice expectations toward potential rate hikes. Despite these duration headwinds, credit markets outperformed core government debt, benefiting from tightening corporate spreads and resilient earnings.
IG Low Volatility – Balanced generated a positive return this quarter on the backdrop of strong global equity and fixed income performance. All underlying funds generated positive returns this quarter.
Among equities, the Mackenzie IG Equity Pool and the Mackenzie IG Low Volatility Canadian Equity Pool were top contributors to performance. The Mackenzie IG Equity Pool was the largest contributor, benefiting from strong selection in the financial sector and an underweight position in the energy and materials sector. The Mackenzie IG Low Volatility Canadian Equity Pool was the second highest contributor, outperforming its benchmark due to strong security selection in the industrials and materials sectors, as well as underweight positions in communication services. The portfolio also added a new position in the Mackenzie Enhanced Equity Risk Premia Fund and Mackenzie US Quantitative Large Cap Fund Series and with added exposure to select holdings.
Within fixed income, Mackenzie - IG Canadian Bond Pool was the leading contributor, followed by Mackenzie - IG Canadian Corporate Bond Pool. Both pools outperformed their benchmarks. The Mackenzie - IG Canadian Bond Pool benefited from an underweight to Canadian federal bonds and selection in federal and provincial bonds. The Mackenzie - IG Canadian Corporate Bond Pool benefited from selection in energy and financial corporate bonds.
The IG Mackenzie Real Property Fund delivered a slight positive return driven by stabilizing office property values, resilient rental income and strong occupancy across its diversified real estate portfolio.
Market overview: earnings strength helped markets absorb uncertainty
The second quarter of 2026 reinforced the resilience of financial markets. Investors faced conflict in the Middle East, commodity-price volatility, shifting interest-rate expectations and renewed inflation concerns, yet global equities continued to advance as corporate earnings and economic activity remained stronger than expected. The S&P 500 gained 14.9% in U.S.-dollar terms for the quarter, while the S&P/TSX Composite Index advanced 6.4%, supported by healthier earnings expectations and improving market breadth.
Canadian equities were led by a strong rebound in financials, as better-than-expected bank earnings, resilient credit quality and improved capital markets activity lifted sentiment. U.S. equities were supported by earnings strength rather than a simple risk-on rally, with Information Technology leading as AI infrastructure spending continued to anchor sentiment. International equities also contributed meaningfully, with emerging markets Korea and Taiwan benefitting from demand across the global technology supply chain.
Market outlook: balanced positioning amid market uncertainty
We maintain an overweight allocation to equities, supported by continued earnings strength, particularly in North America. While uncertainty remains around U.S. Federal Reserve policy and the resolution of the conflict in Iran, our investment decisions ultimately come down to where we see the strongest fundamentals. In our view, North American equities continue to offer resilient earnings growth.
With the confirmation of the new U.S. Federal Reserve Chair, Kevin Warsh, now in the rear-view mirror, markets are squarely focused on the Federal Reserve's forward guidance and the upcoming U.S. mid-term elections. On our end, we will continue to closely monitor inflation expectations and developments in U.S. politics, with a focus on what they mean for businesses and consumers.
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 June 30, 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.
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