Portfolio returns: Q3 2025
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (October 30, 2023) |
Canadian Neutral Balanced Series I | 3.17
| 5.72
| 10.20
| 11.92
| 17.13
| |||
Quartile rankings | 2 | 2 | 2 | 2 |
iProfile™ Enhanced Monthly Income Portfolio – Canadian Neutral Balanced Series I
Q3 commentary 2025
Highlights
① Global markets advanced in Q3, driven by AI-related stocks and rate cuts.
② Equities delivered broad-based gains across regions, driving overall portfolio strength.
③ Bonds posted modest gains, aided by corporate and government exposure.
Portfolio Overview
Global markets advanced in Q3 2025, fuelled by strength in AI-related stocks, easing trade tensions and central bank rate cuts. The U.S. Federal Reserve and Bank of Canada each cut rates by 25 basis points (a quarter of a percentage point), citing slowing job growth. U.S. equities hit record highs, led by AI-related and small-cap stocks. Canadian markets benefited from strength in the materials, information technology and energy sectors. Emerging markets surged, supported by Chinese technology stocks and a weaker U.S. dollar. Gold rallied to historic highs, while oil prices dipped on soft demand and rising supply. Bond markets posted modest gains; high-yield bonds outperformed investment-grade bonds, and emerging-market bonds also benefited from a softer U.S. dollar.
The iProfile™ Enhanced Monthly Income Portfolio – Canadian Neutral Balanced posted a positive return for the quarter, with all underlying funds producing gains.
The iProfile Canadian Dividend and Income Equity Private Pool, with a 37% allocation, was the largest contributor. The fund posted a positive return. Strong stock selection in the industrials and health care sectors supported performance. Stock selection and an underweight to the materials sector was a major detractor to relative performance versus the benchmark.
With a 14% allocation, the iProfile U.S. Equity Private Pool also contributed positively. The fund achieved a positive return. The fund benefited from stock selection in the information technology sector. Stock selection, primarily in the financials and consumer discretionary sectors, detracted from its relative performance.
The Mackenzie - IG Canadian Bond Pool, the heaviest-weighted fund in the portfolio at 40%, was the top fixed income performer and outperformed its benchmark. Government bond selection and an overweight to corporate bonds bolstered results.
The iProfile Emerging Markets Private Pool also delivered strong returns, supported by its underweight position and favourable stock selection in the information technology sector. The iProfile International Equity Private Pool, with an 8% allocation, contributed positively, supported by gains in the financials and industrials sectors.
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: Positive on equities, diversified globally, selective in bonds.
Our outlook for equities became positive in the period, as global markets proved resilient, with improving earnings revisions and stronger investor sentiment. We believe share valuations in Japan remain reasonable, and longer-term metrics suggest that developed international and emerging markets are more attractively valued than those in the United States and Canada.
We believe policy uncertainty and slower global growth are likely to cap inflation. Because tariff-related price increases appear transitory, we do not expect a lasting impact on fixed income investments. In Canada, we believe softer economic data has increased the likelihood of additional Bank of Canada policy rate cuts. In the United States, a more accommodative tone from the U.S. Federal Reserve and mounting fiscal and debt concerns led markets to price in further interest rate cuts into 2026, which we believe could pressure the U.S. dollar.
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