Portfolio returns: Q2 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jan 30, 2023) |
IG Target Education 2030 Portfolio F | 1.18
| 7.46
| 8.31
| 15.93
| 13.27
| 12.08
| ||
Quartile rankings | 2 | 1 | 1 | 1 | 1 |
IG Target Education 2030 Portfolio Series F
Q2 commentary 2026
Highlights
① The Target Education 2030 portfolio outperformed its benchmark over the quarter, net of underlying fund and ETF fees.
② Country and sector rotation strategies both contributed to performance, while active asset allocation positioning detracted modestly.
③ Manager selection was negative over the period, with allocations to T. Rowe US Equity driving most of the underperformance.
Portfolio Overview
The IG Target Education 2030 Portfolio outperformed its benchmark over the quarter.
Country positioning was positive, driven by overweight exposures to South Korea, Taiwan, the U.K. and Spain. An underweight to Canada and Switzerland detracted modestly from returns. Sector rotation was also additive, led by an overweight to Information Technology. Asset allocation positioning detracted from performance over the quarter. Modest overweight positions in U.S. and Japanese equities contributed positively, but these gains were more than offset by a continued short Nasdaq position. Underweight developed market duration delivered mixed results. While short positions in the U.S. long-end and Japanese duration contributed positively, German and Japanese curve positions detracted.
Active equity managers detracted from quarterly performance, primarily due to the allocation to the T. Rowe US Equity Fund.
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: an increasingly differentiated global economy
The global macro backdrop continues to be shaped by elevated geopolitical uncertainty, evolving trade dynamics and the growing importance of fiscal policy. While markets have shown resilience to energy supply and global trade disruptions, we believe that they may be underpricing some of the risks to global growth. Fiscal spending, industrial investment and ongoing reindustrialization efforts across major economies continue to support activity, even as central banks navigate the tension between persistent supply-side inflation pressures and slowing demand. We expect regional divergence to remain an important theme, with Europe benefitting from fiscal expansion, Japan supported by policy normalization and domestic investment, and China showing signs of stabilization following recent policy easing measures.
Against this backdrop, we remain cautious on long-duration developed-market sovereign bonds, where elevated government borrowing needs and fiscal dominance may keep upward pressure on yields. Within equities, we continue to favour regions and sectors supported by fiscal spending, infrastructure development and capital investment, while maintaining a diversified approach amid ongoing geopolitical uncertainty and the potential for periods of elevated market volatility.
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