Portfolio returns: Q2 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Apr 11, 2022) |
IG U.S. Taxpayer Portfolio – Global Neutral Balanced F | 1.58
| 8.78
| 9.48
| 17.58
| 13.50
| 9.90
| ||
Quartile rankings | 2 | 2 | 1 | 1 | 2 |
IG U.S. Taxpayer Portfolio – Global Neutral Balanced Series F
Q2 commentary 2026
Highlights
① The IG U.S. Taxpayer Portfolio – Global Neutral Balanced outperformed its benchmark over the quarter, net of underlying ETF fees.
② Country rotation strategies and relative value U.S. equity sector positions were both additive to the performance over the quarter.
③ Asset allocation decisions detracted from performance.
Portfolio Overview
The IG U.S. Taxpayer Portfolio – Global Equity Balanced outperformed its benchmark over Q2 2026.
Country rotation positioning was positive, driven by overweight exposures to South Korea, Taiwan, the U.K. and Spain. Underweights to Canada, Switzerland, France and Germany detracted modestly from returns. Sector rotation also added to performance overall, led by an overweight to information technology. Asset allocation positioning was negative 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. Duration positioning produced mixed results, with gains from short U.S. long-end and Japanese duration exposures offset by weaker performance from German and Japanese curve strategies.
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 benefiting 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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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 June 30, 2026, 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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