Portfolio returns: Q3 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jun 22, 2020) |
iProfile Portfolio – Global Neutral Balanced I | -0.48
| -0.08
| 7.71
| 9.30
| 13.48
| 7.52
| 8.65
| |
Quartile rankings | 2 | 1 | 2 | 2 | 2 | 1 |
iProfile™ Portfolio – Global Neutral Balanced Series I
Q3 commentary 2026
Highlights
Portfolio Overview
The iProfile™ Portfolio - Global Neutral Balanced, Series I, declined by 0.08% over the period but performed favourably relative to its Global Neutral Balanced peer group median return of -0.73%. Global equity markets advanced during the quarter, supported by resilient corporate earnings and continued investment in artificial intelligence infrastructure. Market leadership also broadened beyond a narrow group of technology companies. However, higher energy prices contributed to renewed inflation pressures, while long-term government bond yields rose in Canada and the United States. Gains from the portfolio’s equity holdings were largely offset by weakness within fixed income.
Equity holdings contributed positively overall, although results varied across regions. Canadian equities were the strongest contributor, supported by effective security selection within the energy sector. Cenovus Energy and Suncor Energy were among the notable contributors, as energy prices moved higher.
U.S. equities also added value, particularly within growth-oriented investments. Cloudflare, Lam Research, Amazon and Broadcom were among the leading contributors, supported by continued investor interest in artificial intelligence and related infrastructure. International developed-market equities made a more modest positive contribution. Japanese equities advanced and led developed markets higher, while European equities declined. Low-volatility international equities also contributed positively during the period.
These gains were partially offset by emerging market equities. Semiconductor holdings, including SK Hynix, Samsung Electronics and Taiwan Semiconductor Manufacturing Company, declined amid a broader global sell-off. This weakness moderated the positive results from Canadian, U.S. and international developed-market equities.
Fixed income holdings were the main detractors from performance, as rising government bond yields pushed bond prices lower. Canadian government bonds were affected by their exposure to longer-term securities, which tend to be more sensitive to changes in interest rates. Global bonds also came under pressure, as yields increased across developed markets.
Within the global fixed income allocation, interest-rate sensitivity had been increased, as government bond yields moved higher, reflecting the view that higher yields presented a more attractive longer-term opportunity. However, yields continued to rise during the period, negatively affecting near-term results. Income-oriented fixed income investments also detracted, while real property investments provided a partial offset.
Alternative strategies provided additional support. Global macro investments benefited from rising oil prices and elevated volatility across asset classes, while equity hedge strategies also contributed positively. Overall, gains across global equities and alternative strategies helped moderate the effect of rising bond yields, allowing the portfolio to perform favourably relative to its peer group median.
Market overview: earnings growth provided a powerful tailwind for equities
The third quarter showed that the current business cycle still has support, but risks have shifted. Growth held up, earnings improved and corporate investment remained firm, but higher oil prices, persistent inflation and rising long-term yields made the path forward less certain. Equities advanced as earnings provided fundamental support, even as higher rates raised the bar for further gains.
Canadian equities benefited from gains in resources and financials. Higher oil prices supported energy, while precious-metals companies were among the strongest performers. Bank earnings were supported by capital-markets activity, trading income and contained credit costs. U.S. equities also advanced, supported by strong earnings and continued technology investment. Higher yields weighed on more rate-sensitive areas.
International markets remained constructive overall, with parts of Asia benefiting from continued demand across the AI technology supply chain. Fixed income faced greater pressure as rising government bond yields outweighed coupon income, while credit remained comparatively resilient. Across markets, the central tension increasingly became earnings strength versus higher inflation and interest rates.
Market outlook: inflation, energy costs pushed long-term yields higher
With the recent earnings strength, the bar for market performance is higher. U.S. valuations are at the upper end of their historical range and have come under pressure from higher bond yields. Investor sentiment points to strong earnings growth going-forward, which could support equities in the near term, but the magnitude of gains may be muted.
The U.S. Federal Reserve and Bank of Canada each face two rate decisions this year, and persistent inflation has shifted central banks toward a tighter policy stance. Long-term yields remain a pressure point for equities, while also improving the income available from bonds.
The U.S. midterms may add to market volatility, but the path forward will be shaped by the economic cycle, inflation and interest rates.
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