Portfolio returns: Q2 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jul 12, 2013) |
IG Growth Portfolio – Canadian Equity F | 1.30
| 12.10
| 13.13
| 31.37
| 22.03
| 13.57
| 11.70
| 10.92
|
Quartile rankings | 2 | 1 | 1 | 1 | 1 | 1 | 2 |
IG Growth Portfolio – Canadian Equity Series F
Q2 commentary 2026
Highlights
① The portfolio appreciated over the quarter, as Canadian equities gained.
② Canadian equities led performance, followed by U.S. equities.
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 – Canadian Equity generated a positive return this quarter, led by domestic equity performance.
The Mackenzie Canadian Equity Pool, the Mackenzie IG U.S. Equity Pool and the Mackenzie Enhanced Equity Risk Premia Fund were the largest contributors. The Mackenzie Canadian Equity Pool delivered positive returns and outperformed its benchmark, driven by an underweight allocation to materials and strong security selection in financials, which offset slight detractions from an overweight allocation and security selection in energy. 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, however, the fund marginally underperformed due to an underweight allocation to information technology, though an underweight allocation to energy served as a primary contributor. The Mackenzie Enhanced Equity Risk Premia Fund, a levered equity fund used by the investment team to manage total portfolio equity exposure in a capital-efficient manner, contributed to returns as U.S. equities gained.
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. Increasing bond yields led to falling bond prices, pressuring fixed income returns. Meanwhile, the Mackenzie Emerging Markets Large Cap Fund was among the weakest contributors over the period. While the fund delivered strong absolute returns this quarter, benefitting from robust stock performance in Korea and Taiwan, it performed relatively in line with its benchmark. On a relative basis, strong stock selection in China and Taiwan contributed to performance, while an overweight allocation to China detracted
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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