Portfolio returns: Q2 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jul 12, 2013) |
IG Growth Portfolio – Global Equity F | 1.99
| 16.77
| 14.16
| 27.52
| 21.54
| 12.82
| 12.01
| 11.78
|
Quartile rankings | 3 | 1 | 2 | 1 | 1 | 1 | 2 |
IG Growth Portfolio – Global Equity Series F
Q2 commentary 2026
Highlights
① The portfolio appreciated during the quarter, as U.S. equities led returns.
② U.S. and global equities were the top contributors.
③ A modest allocation to fixed income alternatives was a slight detractor over the period.
Portfolio Overview
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 and semiconductors. Canadian equities lagged global peers; declines in energy and materials offset strong financial sector performance. A stronger U.S. dollar reduced non-U.S. returns 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.
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.
The IG Growth Portfolio – Global Equity generated a positive return this quarter, as U.S. equities led performance.
The Mackenzie IG U.S. Equity Pool, Mackenzie Comprehensive Equity Pool and Putnam – IG U.S. Growth Pool were the largest contributors. The Mackenzie IG U.S. Equity Pool delivered robust returns on an absolute basis, driven by strength in the information technology sector. On a relative basis, the fund marginally underperformed its benchmark due to an underweight allocation to information technology, though an underweight allocation to energy served as a primary contributor. The Mackenzie Comprehensive Equity Pool, which provides multi-strategy exposure to global equities, posted a solid quarter. While an overweight allocation to China was the largest relative detractor, strong security selection in the United States was the primary contributor. The Putnam – IG U.S. Growth Pool also generated strong results and outperformed its benchmark, led by security selection in information technology, which offset detractions from security selection in consumer staples.
The Mackenzie Enhanced Fixed Income Risk Premia Fund, a levered alternative fixed income fund used to efficiently manage total portfolio exposure, was the sole detractor. Rising bond yields led to falling bond prices, pressuring fixed income returns. Meanwhile, the Mackenzie Canadian Equity Pool generated a positive return and outperformed its benchmark, driven by an underweight allocation to materials and strong security selection within financials, though it remained among the weaker contributors to overall portfolio performance. An overweight allocation to energy also slightly detracted from the pool's relative performance.
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: cautious on equities amid elevated sentiment, neutral on bonds as rate curve flattens.
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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