Portfolio returns: Q1 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jul 13, 2015) |
IG Low Volatility Portfolio – Income Balanced F | -3.13 | 1.20 | 1.20 | 9.86 | 10.31 | 7.13 | 6.80 | 6.31 |
Quartile rankings | 2 | 1 | 1 | 2 | 2 | 1 | 1 |
IG Low Volatility Portfolio – Income Balanced Series F
Q1 commentary 2026
Highlights
① The portfolio gained in Q1 2026, driven by an underweight allocation to U.S. equities, a strong performance from lower-beta stocks and an allocation to a dividend strategy.
② Canadian equities were the top contributors, led by energy and materials.
③ While bonds provided some relative protection and outperformed U.S. equities, it was primarily the portfolio’s diversified exposures that supported overall returns.
Portfolio Overview
Global markets delivered mixed returns in Q1 2026, as resilient economic conditions were offset by rising geopolitical tensions, particularly the U.S.–Iran conflict. Equity performance varied across regions, with weakness in the U.S. and Europe, while other developed markets posted more modest gains. Canadian equities were supported by strength in energy and materials, while China’s stock market lagged amid ongoing economic and policy challenges. A stronger U.S. dollar weighed on non-U.S. returns in Canadian dollar terms. Value stocks outperformed growth stocks across global and North American markets, continuing the prior quarter’s trend, while low-volatility stocks in the U.S. and Canada delivered stronger returns than the S&P 500 and S&P/TSX. In commodities, oil prices rose sharply amid geopolitical risks tied to the U.S.–Iran conflict and concerns around supply disruptions, particularly through the Strait of Hormuz. Gold also gained over the period, albeit with elevated volatility, supporting inflation-sensitive assets and contributing to sector dispersion.
Fixed income markets delivered a mixed performance, with core government bonds generally flat to weaker, as rising yields weighed on returns. In both the U.S. and Canada, elevated yields and shifting rate expectations limited gains, while corporate bonds outperformed on the back of lower duration.
IG Low Volatility – Income Balanced generated a positive return this quarter on the backdrop of strong global equity performance.
Among equities, the Mackenzie IG Low Volatility Canadian Equity Pool and the Mackenzie Canadian Dividend Fund were top contributors to performance. The Mackenzie IG Low Volatility Canadian Equity Pool was the largest contributor, outperforming its benchmark due to strong security selection in the materials and consumer discretionary sectors, as well as overweight positions in information technology. The Mackenzie Canadian Dividend Fund was the second-largest contributor, benefiting from strong selection in the industrials and utilities sectors. It also benefited from an overweight position in the energy sector and an underweight position in information technology. The portfolio also exited its position in the Mackenzie Bluewater Canadian Growth Fund and reduced exposure to select holdings.
Within fixed income, the Mackenzie IG Income Pool Series P was the leading contributor. The fund benefited from an overweight allocation to provincial bonds and effective selection of federal government bonds.
The IG Mackenzie Real Property Fund posted a slightly positive return due to increased property market values and continued strong operating results. Improvements in revenues, income and occupancy across sectors, particularly in office, supported performance.
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: focus on fundamentals amid market uncertainty
While geopolitical tensions remain elevated, developments in North America — such as the nomination of a new U.S. Federal Reserve Chair — have taken a back seat for global investors. Through it all, our focus on business fundamentals remains intact.
We are closely monitoring the recent rise in oil prices and its potential implications for inflation and global growth. To date, the U.S. consumer has remained resilient, supported in part by higher tax refunds this year. Ultimately, our outlook for earnings will depend on where oil prices stabilize and how persistent these changes prove to be, as this will shape the trajectory for both consumers and businesses.
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.
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