iProfile™ Portfolio – Global Equity Series I

The iProfile™ Portfolio – Global Equity, Series I, rose over the period (by 2.3%) and outperformed its global equity peer group median (-0.8%). All component iProfile pools made gains, with the iProfile Emerging Markets Private Pool performing best, and U.S. equities contributing the most. Low-volatility equities underperformed.

Global equity markets maintained their strength through the fourth quarter of 2025, with the S&P/TSX Composite Index (6.3%), S&P 500 (1.1%), Dow Jones Industrial Average (2.3%) and Nasdaq Composite indices (1.2%) delivering positive returns, despite an initial pullback following record highs in Q3 (all figures in Canadian dollars, total return). International markets, as reflected in the MSCI EAFE Index (3.3%) were higher, supported by easing inflation pressures and improving earnings expectations. Developed markets in Europe and Japan advanced, while emerging markets delivered mixed results; South Korea outperformed, whereas China lagged amid persistent economic and policy challenges. Canadian equities outpaced U.S. markets, benefiting from their cyclical sector composition and improving global risk appetite. A weaker U.S. dollar boosted returns for non-U.S. assets and emerging markets. As a result, all the portfolio’s main equity components had mixed gains, with the iProfile Emerging Markets Private Pool (5.5%) and iProfile Canadian Equity Private Pool (4.5%) leading the charge. These were followed by modest returns from other regional pools, including iProfile U.S. Equity Private Pool (1.2%), iProfile International Equity Private Pool (2.1%) and iProfile ETF Private Pool (2.3%).

The iProfile Emerging Markets Private Pool was the top performer. It outperformed the MSCI Emerging Markets Index (in Canadian dollars, total net return), as all three of the component mandates in the pool delivered gains, and two outperformed the MSCI benchmark. However, the pool’s overall contribution to portfolio gains was limited by its relatively low weight allocation. The pool’s absolute performance benefited most from an overweight allocation to, and stock selection in, the information technology sector. More than 30% of the pool is invested in the sector and it accounted for more than all of the pool’s total return. Roughly half of the gains came from holdings in the semiconductor group, especially in South Korea.

The iProfile Canadian Equity Private Pool is the portfolio’s second largest component, comprising almost 15%, and was the top contributor to total return. With a return of 4.5%, it was the portfolio’s second-best performer. However, the Canadian equity pool lagged the benchmark S&P/TSX Composite Index, mainly due to stock selection in the materials and financials sector. Nonetheless, for most component mandates, relative positioning in the materials sector was a significant driver of performance. 

The iProfile Low Volatility Private Pool (0.04%) was the weakest-performing component of the portfolio. It lagged most major large-cap market indices, due to the general underperformance of low-volatility stocks. Low-volatility equity indices underperformed their non-low-volatility counterparts in all regions. The iProfile Alternatives Private Pool (0.9%) also underperformed major equity indices. Both the low-volatility pool and the alternatives pool are intended to provide steadying influences during volatile markets and are not expected to outperform during strong equity market environments.