Portfolio returns: Q1 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Apr 19, 2022) |
IG Mackenzie U.S. Dollar Fund – Global Equity Balanced F | -4.13
| 0.16
| 0.16
| 12.64
| 11.75
| 8.09
| ||
Quartile rankings | 1 | 1 | 1 | 3 | 2 |
IG Mackenzie U.S. Dollar Fund – Global Equity Balanced Series F
Q1 commentary 2026
Highlights
① The fund posted a positive return supported by currency hedging, as the U.S. dollar strengthened against other major currencies.
② In equities, energy was the main positive contributor, while financials and information technology detracted, with sector positioning aiding relative results.
③ Fixed income contributed to absolute performance, supported by Government of Canada bonds, though corporate exposure and rate positioning detracted.
Portfolio Overview
The IG Mackenzie U.S. Dollar Fund – Global Equity Balanced generated a positive return, although it underperformed its benchmark.
Global markets delivered mixed results in Q1 2026, as resilient economic conditions were tempered by rising geopolitical risks, most notably the U.S.–Iran conflict. Equity performance diverged across regions: U.S. and European markets weakened, while select developed markets posted modest gains. Canadian equities outperformed, supported by strong energy and materials performance, whereas emerging markets lagged amid persistent economic and policy headwinds. A stronger U.S. dollar reduced non-U.S. returns for Canadian investors. Value stocks continued to outperform growth stocks globally and in North America, extending the trend from the prior quarter.
Commodity markets rose sharply, driven by geopolitical tensions. Oil prices surged on concerns over potential supply disruptions, particularly through the Strait of Hormuz. Gold also advanced, though with elevated volatility, supporting inflation-sensitive assets and contributing to sector dispersion.
Fixed income returns were mixed. Core government bonds were flat to weaker, as rising yields weighed on performance. In both the U.S. and Canada, elevated yields and shifting interest rate expectations limited duration returns, while credit markets outperformed on a relative basis.
Within the current economic and market environment, the fund’s global equity mandate, which represents 68% of the portfolio, posted a negative return. Financials and information technology sectors were major detractors to absolute performance, while the energy sector contributed positively to performance. Security selection within health care holdings, along with overweight allocations to energy and underweight to consumer discretionary, contributed to relative outperformance.
Representing a 20% fixed income allocation, the Mackenzie Canadian Strategic Fixed Income ETF posted a positive return in local currency, though it underperformed its benchmark. Absolute performance was positive, driven by Government of Canada bonds, while relative underperformance was mainly due to overweight corporate exposure (particularly financials and infrastructure) and positioning for lower yields, which detracted during periods of rising rates.
The Mackenzie Core Plus Global Fixed Income ETF, with an allocation of 10%, generated a negative return, although it outperformed its benchmark. Government bonds and industrials corporate bonds were major detractors to absolute performance. However, selection in federal government bonds contributed to relative outperformance.
The fund’s foreign currency hedging policy was the major positive contribution to returns, as the U.S. dollar strengthened against other major currencies.
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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