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 F | -5.71
| -2.82
| -2.82
| 11.41
| 14.28
| 9.51
| ||
Quartile rankings | 1 | 2 | 2 | 3 | 2 |
IG Mackenzie U.S. Dollar Fund – Global Equity Series F
Q1 commentary 2026
Highlights
① The portfolio generated a negative return in Q1 2026, driven by weakening U.S. equity markets.
② Financials and information technology detracted from absolute performance, while security selection in U.S. health care and overweight consumer positions contributed to relative outperformance.
③ Fully hedged U.S. dollar exposure contributed positively, supported by U.S. dollar strength.
Portfolio Overview
The IG Mackenzie U.S. Dollar Fund – Global Equity generated a negative return, as U.S. equity markets declined, although it outperformed its benchmark.
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 emerging markets lagged amid ongoing economic and policy challenges. A stronger U.S. dollar weighed on non-U.S. returns in Canadian dollar terms. Value outperformed growth stocks across global and North American markets, continuing the prior quarter’s trend.
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.
Financials and information technology sectors were major detractors to the fund’s absolute performance. Security selection within U.S. health care holdings, along with overweight allocations to consumer discretionary and consumer staples, contributed to relative outperformance.
Additionally, the fund’s fully hedged U.S. dollar exposure contributed positively 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.
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