Portfolio returns: Q2 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Apr 19, 2022) |
IG Mackenzie U.S. Dollar Fund – Global Fixed Income Balanced F | 0.27
| 3.59
| 3.87
| 8.67
| 8.30
| 6.07
| ||
Quartile rankings | 1 | 2 | 1 | 1 | 1 |
IG Mackenzie U.S. Dollar Fund – Global Fixed Income Balanced Series F
Q2 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, IT and financials were the main positive contributors, while security selection detracted from relative results.
③ Fixed income contributed to performance, supported by government and financial corporate bonds, while yield curve positioning aided relative results.
Portfolio Overview
The IG Mackenzie U.S. Dollar Fund – Global Fixed Income Balanced generated a positive return and outperformed its benchmark.
Global equities surged in Q2 2026, 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 stocks outperformed value stocks.
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.
Within this economic and market backdrop, the fund’s global equity mandate, representing 29% of the portfolio, posted a positive return, although it underperformed its benchmark. Information technology and financials holdings were the largest contributors to absolute performance. Security selection within U.S. information technology and financials, along with underweight allocations to information technology, contributed to relative underperformance.
Representing a 40% allocation, the Mackenzie Canadian Strategic Fixed Income ETF posted a positive return and outperformed its benchmark. Absolute performance was driven by Government of Canada bonds, while relative outperformance was primarily due to security selection in Canadian federal and provincial bonds, together with an underweight position in federal bonds.
The Mackenzie Core Plus Global Fixed Income ETF, with a 30% allocation, generated a positive return and outperformed its benchmark. Government bonds and financial corporate bonds were the largest contributors to absolute performance. Relative outperformance was driven by active yield curve positioning, partially offset by sector allocation across credit and government bond sectors.
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: 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.
Our outlook for equities remains neutral. While the fundamental backdrop of the economy and corporate earnings remains strong, we are cautious of stretched retail investor positioning, which increases the vulnerability to sharp market sell-offs. From a relative standpoint, we favour U.S. small caps over Canadian equities. The robust U.S. economy continues to support U.S. small caps, which have remained undervalued for a prolonged period, whereas recent Canadian economic data has shown notable weakness. Additionally, we have closed our underweight position in European equities, as the region's economic data has begun to improve.
In fixed income, we maintain a neutral duration stance. Aggressive inflation-fighting rhetoric from the new U.S. Federal Reserve Chair has triggered a flattening of the yield curve, driving short-term yields higher as additional rate hikes are priced in, while long-term yields have declined on lower long-term inflation expectations. This unique curve dynamic, combined with persistently strong U.S. economic data, reinforces our measured and balanced approach to bond positioning.
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