Portfolio returns: Q4 2025
| 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 | -0.38
| 0.82
| 8.67
| 8.67
| 8.31
| 5.82
| ||
Quartile rankings | 4 | 4 | 4 | 4 | 2 |
IG Mackenzie U.S. Dollar Fund – Global Fixed Income Balanced Series F
Q4 commentary 2025
Highlights
① The portfolio gained in Q4 2025, driven by broad-based equity strength.
② Global equities and global fixed income posted gains, supported by sector and bond selection.
③ Canadian fixed income and U.S. dollar hedging detracted from overall returns.
Portfolio Overview
The IG Mackenzie U.S. Dollar Fund – Global Fixed Income Balanced generated a positive return, though it underperformed its benchmark.
Global markets delivered positive returns in Q4 2025, as easing inflation and stable financial conditions, coupled with broadly supportive corporate results, helped maintain investors’ risk-on sentiment. Equity performance was positive across most regions, with a few exceptions, such as China, which lagged amid ongoing economic and policy challenges. Canadian equities outperformed U.S. markets, supported by a strong performance in cyclical sectors, including materials, financials and consumer discretionary, reflecting continued global risk appetite. The Canadian dollar strengthened against major currencies, resulting in lower unhedged returns for Canadian investors. Lower-priced, value-oriented companies outperformed high-growth companies across global and North American markets. In commodities, gold and silver performed exceptionally well amid lingering macroeconomic and geopolitical risks and strong investor demand, while oil prices declined on concerns over excess supply. In fixed income, U.S. bond markets delivered modest gains supported by income and stable credit conditions, while Canadian bond returns faced modest price pressure, as yields rose earlier in the period.
Equity exposure represented by the portfolio’s 34% allocation to the Mackenzie Global Equity Income Fund, was the largest contributor to performance and outperformed its benchmark. Returns were driven by Canadian equity holdings. Stock selection in financials and materials was the largest contributor to outperformance, while overweight in information technology added value. Conversely, stock selection in health care detracted from the relative performance modestly. Dividend-paying sectors, such as financials, energy, utilities and consumer staples, generally performed relatively well, supported by stable cash flows and income demand in a volatile market.
Within this economic and market backdrop, the fund’s global equity mandate, representing 30% of the portfolio, delivered a positive local return but underperformed its benchmark. Performance was supported by the financials and health care sectors. Relative to the benchmark, stock selection in real estate added value, while selection in information technology and materials detracted from results.
Representing a 40% allocation, the Mackenzie Canadian Strategic Fixed Income ETF posted a negative return, though it outperformed its benchmark. Government bond exposure detracted from absolute performance, while bond selection and an underweight to government bonds supported relative results. An overweight to corporate bonds partially offset the relative outperformance.
The Mackenzie Core Plus Global Fixed Income ETF, with a 30% allocation, generated a positive return and outperformed its benchmark. Government bond selection added value, while an underweight to corporate bonds modestly detracted from relative performance.
The fund’s foreign currency hedging policy detracted from returns, as the U.S. dollar underperformed other major foreign currencies.
Market overview: global growth strengthened, inflation eased, policy supportive
Markets ended the fourth quarter of 2025 on a strong note, capping a year defined by resilience and broad-based gains. Equities led performance, as investors looked beyond policy noise and focused on improving fundamentals. Global markets advanced, supported by steady corporate earnings, easing inflation pressures and a clear shift toward lower interest rates. Canada outperformed most developed peers, driven by strength in materials and financials, while European and Asian markets rebounded on firmer trade activity and renewed investor confidence. In the U.S., equity performance remained positive, led by technology and communication services, with improving breadth across sectors signalling a healthier market foundation.
Fixed income delivered modest but positive returns, as central banks continued to ease policy. Government yields declined on the short end while longer maturities remained stable, allowing coupon income to drive returns. Credit conditions stayed firm, underscoring the strength of corporate balance sheets entering 2026.
Market outlook: positive on equities and diversified globally
Our outlook for equities in 2026 remains positive, supported by strong corporate earnings and a resilient U.S. economy. However, we expect higher volatility than in 2025, as the second year of a U.S. presidential term has historically been more volatile. Within equities, we have increased our allocation to Canadian stocks, supported by resilient economic data and upward earnings revisions. We continue to find attractive valuations in Japan and EAFE and maintain a neutral view for the U.S.
In fixed income, we remain neutral on duration, as markets are already pricing in roughly two rate cuts for 2026, which we view as fair. We are also monitoring market reactions ahead of the announcement of the next U.S. Federal Reserve Chair.
In currencies, our long-term view is for the U.S. dollar to depreciate against major currencies, including the euro and Japanese yen.
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