iProfile™ Portfolio – Global Neutral Balanced Series I

The iProfile™ Portfolio – Global Neutral Balanced, Series I, rose over the period (0.3%) and outperformed its Global Neutral Balanced peer group median (0.02%). Most component iProfile pools made gains, with the iProfile Canadian Private Pool performing best, and the iProfile Fixed Income Private Pool delivering the weakest return. The portfolio benefited most from its North American equity components.

Market conditions were mixed during the quarter, with global equity markets experiencing elevated volatility and fixed income markets pressured by rising yields. The period was shaped by escalating geopolitical tensions in the Middle East and a sharp rise in oil prices, which supported commodity-sensitive equities but created a more challenging backdrop for traditional global bond mandates. Treasury yields rose during the quarter, as inflation concerns persisted. Within this backdrop, Canadian equity, emerging markets and selected low-volatility exposures were more supportive, while global bonds, U.S. equities and macro-oriented strategies faced headwinds.

The iProfile Canadian Equity Private Pool was the portfolio's 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 and 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 contributed further, despite its smaller weight, as gains from Samsung Electronics, SK hynix, Taiwan Semiconductor Manufacturing and selected Latin American commodity exposures supported results.

The iProfile Active Allocation Private Pool II added to total return. The quarter's result reflected BlackRock's evolving regional views, beginning with a preference for non-U.S. equities, including 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 were also supportive. The BlackRock – IG Low Volatility International Equity Pool contributed positively, despite its relatively small 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. Within the portfolio's more defensive fixed income and income-oriented holdings, the IG Mackenzie Mortgage and Short Term Income Fund, IG Mackenzie Real Property Fund and Mackenzie – IG Canadian Bond Pool each contributed positively, with the real property sleeve supported by improving fundamentals in industrial properties and stable rental conditions.

The iProfile U.S. Equity Private Pool was the most significant detractor from performance. 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 energy holdings, such as ConocoPhillips and Shell, provided some offset. The PIMCO – IG Global Bond Pool also detracted materially, as rising corporate and government bond yields, sticky inflation and reduced expectations for policy easing weighed on global bonds. Additional modest headwinds came from the Mackenzie Global Macro Fund, the iProfile ETF Private Pool, the Wellington – IG Global Equity Hedge Pool, the IG Manulife Strategic Income Fund and the Mackenzie North American Corporate Bond Fund. In this context, the portfolio's outperformance versus peers was driven by stronger contributions from Canadian, international and emerging equity exposures, active regional allocation and selected low-volatility sleeves, which more than offset weakness in U.S. equities and global bonds.