iProfile™ Portfolio – Global Fixed Income Balanced Series F

The iProfile™ Portfolio – Global Fixed Income Balanced, Series F, declined modestly over the first quarter of 2026 (-0.03%) in line with its global fixed income balanced peer group (0.02%). Most component sleeves contributed positively over the period, with the iProfile Canadian Equity Private Pool contributing most to total return, followed by the iProfile International Equity Private Pool and the iProfile Active Allocation Private Pool, while the PIMCO – IG Global Bond Pool  and the iProfile U.S. Equity Private Pool were the primary detractors. However, the portfolio's core fixed income allocation faced significant headwinds that offset the positive contributions from equity exposures.

Market volatility increased in March 2026 as Middle East conflict escalated and energy prices spiked. Treasury yields rose during the quarter as inflation concerns persisted. High-yield bond spreads initially reached multi-year lows before widening again late in the quarter, in response to concerns about artificial intelligence and escalating tensions. Within the portfolio, this backdrop favoured Canadian and emerging equity positions, supported the active allocation sleeve's regional tilts and weighed on global bond and U.S. equity technology-heavy segments. As a result, the iProfile Canadian Equity Private Pool (2.8%), iProfile U.S. Equity Private Pool (-3.2%), iProfile International Equity Private Pool (2.0%), iProfile Emerging Markets Private Pool (5.8%), and iProfile ETF Private Pool (-0.7%), which together comprise approximately 23% of the portfolio, were the primary drivers of total return, more than offsetting headwinds from the core fixed income allocation.

The iProfile Canadian Equity Private Pool was the top contributor to total return. The pool benefited primarily from strong energy positioning, including overweight exposures to Cenovus Energy and Suncor Energy, as crude oil prices rose sharply during the quarter. These gains were partially offset by weaker results in consumer discretionary, where holdings such as Dollarama and Pet Valu declined, and by some softness in financials. The iProfile International Equity Private Pool also contributed meaningfully. Its underlying strength came largely from stock selection across communication services, information technology, health care and consumer staples, with support from names such as ASML Holding, Shell, TotalEnergies, Eni and BAE Systems. The iProfile Emerging Markets Private Pool provided additional support, despite its smaller weight, as strength in Samsung Electronics, SK hynix, Taiwan Semiconductor Manufacturing and selected Latin American commodity exposures supported results.

The iProfile Active Allocation Private Pool contributed positively to total return, though not enough to offset the broader headwinds. The quarter's result reflected BlackRock's shifting regional views, beginning with a preference for non-U.S. equities, particularly Korea, followed by continued conviction in Japan and broader Asian emerging markets, and ending with a more constructive U.S. equity overweight late in the quarter. Low-volatility sleeves provided some support. The BlackRock – IG Low Volatility International Equity Pool contributed positively, despite its modest weight, while the low-volatility Canadian and emerging market sleeves also added to returns. More broadly, low-volatility strategies benefited from stronger results in communication services, financials and selective energy holdings during a quarter in which higher-valuation technology and software names corrected. Among the portfolio's more income-oriented holdings, the Mackenzie – IG Canadian Bond Pool, the IG Mackenzie Mortgage and Short Term Income Fund and the IG Mackenzie Real Property Fund all contributed positively, with the real property sleeve supported by improving fundamentals in industrial properties and stable rental conditions. However, these positive contributions were insufficient to overcome the significant drag from the PIMCO – IG Global Bond Pool and iProfile U.S. Equity Private Pool allocations.

The PIMCO – IG Global Bond Pool was the most significant detractor from performance. It faced headwinds as U.S. corporate and government bond yields rose, inflation remained sticky, and expectations for U.S. Federal Reserve easing were reduced amid the quarter's oil-price shock and broader geopolitical uncertainty. The iProfile U.S. Equity Private Pool was the primary equity detractor. Weakness was concentrated in information technology, health care, communication services and financials, with Microsoft, Micron Technology and Capital One Financial among the notable detractors, although ConocoPhillips and Shell provided some offset through stronger energy exposure. Additional modest headwinds came from the Mackenzie Global Macro Fund, the iProfile ETF Private Pool, the IG Manulife Strategic Income Fund, the Mackenzie North American Corporate Bond Fund and the Wellington – IG Global Equity Hedge Pool. In this context, the portfolio's underperformance versus the category average reflected the significant drag from the PIMCO – IG Global Bond Pool and iProfile U.S. Equity Private Pool, which more than offset the otherwise strong contributions from Canadian, international and emerging equity exposures, active regional allocation and selected low-volatility sleeves. The portfolio's higher allocation to global bonds and U.S. equities relative to category peers detracted from relative performance during a quarter that favoured Canadian and international equity exposures.