iProfile™ Portfolio – Global Equity Series I

The iProfile™ Portfolio – Global Equity, Series I rose over the period (by 8.4%) and outperformed its global equity peer group median (6.9%). 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 were mostly higher in the third quarter of 2025. The S&P/TSX Composite Index (12.5%), S&P 500 (10.5%), Dow Jones Industrial Average (8.0%) and Nasdaq Composite indices (13.9%) all touched record highs (all figures in Canadian dollars, total return). International markets, as reflected in the MSCI EAFE Index (7.1%) were higher, but several countries, including Germany, lost ground in local currency terms. Investors drew comfort, first, from trade deals (or outlines of trade deals) that reduced U.S. tariffs (or threatened tariffs) with many trading partners, reducing uncertainty. Secondly, economic data remained surprisingly solid, especially in the U.S., and contained inflation pressures that allowed several central banks to lower benchmark interest rates, including the U.S. Federal Reserve, the Bank of Canada and the Bank of England. As a result, all the portfolio’s main equity components made solid gains, including the iProfile Canadian Equity Private Pool (8.7%), iProfile U.S. Equity Private Pool (9.3%), iProfile International Equity Private Pool (6.2%), iProfile Emerging Markets Private Pool (13.4%) and iProfile ETF Private Pool (9.7%).

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 double-digit percentage 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 45% of the pool’s total return. Almost two-thirds of that came from Taiwan’s and South Korea’s electronics giants, Taiwan Semiconductor Manufacturing Co. and Samsung Electronics, respectively.

The iProfile U.S. Equity Private Pool is the portfolio’s largest component, comprising almost 30%, and was the top contributor to total return. With a return of over 9%, it was the portfolio’s second-best performer. However, the U.S. equity pool lagged the benchmark S&P 500 Index, mainly due to an underweight exposure to the technology sector, one of the top-performing sectors in the benchmark. Nonetheless, the information technology sector accounted for over 45% of the pool’s total return in the period. The iProfile ETF Private Pool and the iProfile Active Allocation Private Pool IV (9.2%), which each have significant exposure to U.S. equities, posted similarly strong results. 

The iProfile Low Volatility Private Pool (3.7%) 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 (4.7%) 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.