iProfile™ Portfolio – Global Equity Balanced Series I

The iProfile™ Portfolio – Global Equity Balanced, Series I, rose over the period (0.5%) and outperformed its Global Equity Balanced peer group median (-0.25%). Most component iProfile pools delivered positive returns, with the iProfile Emerging Markets Private Pool performing best, while the iProfile U.S. Equity Private Pool delivered a negative return. The portfolio benefited most from its Canadian equity components and international equity exposures.

Global equity markets experienced heightened volatility during the first quarter of 2026, with significant divergence across regions. Market volatility increased in March 2026, as Middle East conflict escalated, and energy prices spiked. The S&P 500 Index declined by 4.3%, while the S&P/TSX Composite Index advanced by 3.3%, benefiting from resilient commodity prices and surging gold prices to record levels (all figures in Canadian dollars, total return). International markets showed weakness, with developed markets under pressure, while emerging markets held relatively steady. As a result, the portfolio's main equity components had a widely diverging performance, with the iProfile Emerging Markets Private Pool (5.6%) and iProfile Canadian Equity Private Pool (2.8%) leading gains, followed by the iProfile International Equity Private Pool (2.0%), while the iProfile U.S. Equity Private Pool (-3.2%) and iProfile ETF Private Pool (-0.7%) declined.

The iProfile Emerging Markets Private Pool was the top-performing equity component on an absolute basis, delivering a strong 5.8% return and outperforming the MSCI Emerging Markets Index (in Canadian dollars, total net return). All three of the component mandates in the pool delivered positive gains, with strength concentrated in South Korea and Taiwan, benefiting from robust semiconductor demand related to artificial intelligence. However, the pool's overall contribution to portfolio gains was limited by its relatively low weight allocation of approximately 3.8%. The pool's absolute performance benefited most from overweight allocation to, and stock selection in, the information technology sector, which accounted for the majority of the pool's total return, with roughly half of the gains coming from holdings in the semiconductor industry group.

The Canadian equity pools were the top equity contributors to total return, including the Canadian low volatility segment within the low volatility pools. The iProfile Canadian Equity Private Pool contributed most, in part due to its meaningful weight of 17.2%, delivering a 2.8% return that significantly outperformed U.S. equity markets. The pool benefited from strength in energy and materials sectors amid resilient commodity prices and a surge in gold prices. The iProfile International Equity Private Pool also contributed meaningfully, generating a 2% return, despite broader weakness in developed international markets, with the pool benefiting from selective positioning in European and Asian markets. In contrast, the iProfile U.S. Equity Private Pool significantly detracted from performance, declining by 3.2% as U.S. large-cap technology stocks faced pressure from concerns about AI-related spending sustainability and elevated valuations. The pool's substantial weight of approximately 14.9% magnified this negative impact on total portfolio returns.

The iProfile Fixed Income Private Pool, representing approximately 37% of the portfolio, declined modestly by 0.2% during the quarter, providing important stability amid equity market volatility, despite the modest negative return. Rising energy prices related to Middle East tensions in March created additional pressure across fixed income markets. High-yield bond spreads initially reached multi-year lows before widening again late in the quarter. The IG Mackenzie Real Property Fund contributed positively with a 0.84% return, providing a source of positive returns during a challenging quarter for traditional bond markets.