Portfolio returns: Q3 2025
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Apr 11, 2022) |
IG U.S. Taxpayer Portfolio – Global Neutral Balanced F | 3.26
| 5.98
| 9.97
| 12.49
| 13.73
| 8.86
| ||
Quartile rankings | 2 | 2 | 2 | 2 | 1 |
IG U.S. Taxpayer Portfolio – Global Neutral Balanced Series F
Q3 commentary 2025
Highlights
① The IG U.S. Taxpayer Portfolio - Global Neutral Balanced outperformed its benchmark over the quarter, net of underlying ETF fees.
② Asset allocation decisions were flat over the quarter. U.S. equity sector positions and country positioning both contributed to the performance.
③ We continue to position overweight equities and underweight fixed income over the quarter.
Portfolio Overview
The IG U.S. Taxpayer Portfolio - Global Neutral Balanced outperformed its benchmark over Q3 2025.
Asset allocation positioning was flat over the quarter. While the overweight position in Japanese and EAFE equities contributed to the performance, it was offset by an underweight to U.S. equities and an underweight to fixed income. Country relative value positioning was a main contributor over the quarter, driven by overweight positions to Japan and China. Underweights to Australia, Hong Kong and Switzerland detracted. Sector positioning was also additive. An overweight to financials, energy and health care contributed collectively, while an underweight to utilities and industrials detracted.
Market overview: signs of optimism emerge, despite the noise during "Liberation Day" fallout
The third quarter delivered broad gains across asset classes, with market performance largely overriding a backdrop of cautious sentiment. Investors looked past persistent trade policy headlines, increasingly treating the U.S. administration's tariff policy as noise rather than a core risk. The primary catalysts for the positive performance were a subtle shift toward lower-interest-rate expectations and resilient corporate earnings.
Signals from the U.S. Federal Reserve of imminent rate cuts were followed by a quarter percentage cut in September. Government bond yields eased into the quarter's end, supporting bond prices, while corporate bonds outperformed government bonds.
Market outlook: A secular shift from the past norms
While European cohesion may be a theme in markets, U.S. economic policy has clearly exhibited some recent fiscal-monetary fissures. Our portfolios remain positioned for a scenario in which the U.S. Federal Reserve (the Fed) pursues a cycle of rate cuts, despite persistent firmness in inflation and structural tightness in labour markets. The Fed’s September meeting captured these tensions, as the central bank simultaneously initiated an easing cycle while upgrading both its growth and inflation forecasts. A policy outturn along these lines would mark a clear departure from historical patterns.
While consensus narratives may consider this move toward a rate-cutting position as a mix of malfeasance and malpractice, we believe this is misplaced. Rather, the two structural forces of debt sustainability (ensuring interest rates remain below economic growth rates) and the onshoring of critical industries likely necessitate the policy outturns that we are currently observing. We increased our fixed income underweight in both the U.S. and Europe earlier in September, as bond yields fell following a weak U.S. employment report. We believe this price action reflected investors mistaking a structural slowdown in U.S. job gains for cyclical weakness.
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Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus and speak to an IG Advisor before investing. The rate of return is the historical annual compounded total return as of September 30, 2025, including changes in value and reinvestment of all dividends or distributions. It does not take into account sales, redemption, distribution, optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, values change frequently and past performance may not be repeated. Mutual funds and investment products and services are offered through the Mutual Fund Division of IG Wealth Management Inc. (in Quebec, a firm in financial planning). And additional investment products and brokerage services are offered through the Investment Dealer, IG Wealth Management Inc. (in Quebec, a firm in financial planning), a member of the Canadian Investor Protection Fund.
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