Portfolio returns: Q3 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Apr 19, 2022) |
IG Mackenzie U.S. Dollar Fund – Global Equity F | -1.44
| 2.14
| 8.11
| 9.79
| 17.68
| 11.02
| ||
Quartile rankings | 2 | 1 | 3 | 3 | 2 |
IG Mackenzie U.S. Dollar Fund – Global Equity Series F
Q3 commentary 2026
Highlights
① The portfolio generated a positive return during the quarter, outperforming its benchmark, driven by a strong U.S. equity market.
② Strong security selection in financials and health care supported relative performance, while U.S., Japanese and German equities contributed positively.
③ The fund's fully hedged U.S. dollar exposure had a marginal negative impact on returns, amid mixed currency movements during the quarter.
Portfolio Overview
The IG Mackenzie U.S. Dollar Fund – Global Equity generated a positive return as U.S. equity markets rallied, although it outperformed its benchmark.
Global markets navigated a volatile third quarter, as resilient economic activity and corporate earnings competed with persistent inflation and geopolitical uncertainty. U.S. spending and investment remained firm, while elevated inflation prompted the U.S. Federal Reserve to raise rates by 25 basis points in September. Canadian economic activity improved, while the Bank of Canada held its policy rate at 2.25%.
Equities advanced despite rising bond yields, with U.S. stocks supported by resilient earnings. Canadian equities gained, with energy among the leading sectors, as oil prices increased, while international markets delivered mixed results. Performance varied across equity styles and sectors, with higher-beta and cyclical exposures benefiting from selective market strength.
Low-volatility equities lagged broader markets in the U.S. and Canada, with Canadian low-volatility stocks particularly affected by weakness in defensive sectors, as market leadership favoured higher-beta exposures.
Within this backdrop, the IG Mackenzie U.S. Dollar Fund – Global Equity generated a positive return during the quarter and outperformed its benchmark. Information technology and financials were the largest contributors to absolute performance, followed by energy and health care. Relative outperformance was primarily driven by strong security selection in financials and health care, along with favourable positioning in energy and real estate. Weaker selection in information technology, materials and communication services detracted from relative performance.
Regionally, U.S. equities were the largest contributors to absolute returns, followed by Japan and Germany. Strong security selection in the U.S. and Germany supported relative performance, alongside favourable positioning in Singapore, while exposure to Taiwan and China detracted.
Additionally, the fund's fully hedged U.S. dollar exposure had a marginal negative impact on returns, as the U.S. dollar remained relatively unchanged against the Canadian dollar and delivered mixed performance against other major currencies during the quarter.
Market overview: earnings growth provided a powerful tailwind for equities
The third quarter showed that the current business cycle still has support, but risks have shifted. Growth held up, earnings improved and corporate investment remained firm, but higher oil prices, persistent inflation and rising long-term yields made the path forward less certain. Equities advanced as earnings provided fundamental support, even as higher rates raised the bar for further gains.
Canadian equities benefited from gains in resources and financials. Higher oil prices supported energy, while precious-metals companies were among the strongest performers. Bank earnings were supported by capital-markets activity, trading income and contained credit costs. U.S. equities also advanced, supported by strong earnings and continued technology investment. Higher yields weighed on more rate-sensitive areas.
International markets remained constructive overall, with parts of Asia benefiting from continued demand across the AI technology supply chain. Fixed income faced greater pressure as rising government bond yields outweighed coupon income, while credit remained comparatively resilient. Across markets, the central tension increasingly became earnings strength versus higher inflation and interest rates.
Market outlook: equity opportunities supported by resilient earnings
We remain overweight equities, which continue to offer the most attractive opportunities among major asset classes, as elevated oil prices and bond yields have yet to materially weigh on corporate earnings.
Within equities, we remain underweight Canada, where trade uncertainty with the U.S. and elevated financial-sector valuations remain headwinds. We favour developed Asia, particularly Japan, supported by attractive valuations and continued investment in AI hardware infrastructure. We also maintain an overweight to U.S. small-cap equities, although conviction has been trimmed following strong performance.
In currencies, the recent Canadian dollar sell-off has improved its valuation relative to the U.S. dollar, with elevated oil prices providing additional support. We also continue to favour the Japanese yen, which remains the most undervalued currency among G7 economies.
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