iProfile™ Private Discretionary Portfolio – Global Equity
Portfolio commentary Q2 2025
Highlights
① The portfolio rose over the period, with most positive contributions coming from the traditional equity iProfile pools. Low-volatility and alternative exposures detracted.
② Equities staged a sharp V-shaped recovery after tariff reversal.
③ Investors look ahead to trade-policy clarity.
Portfolio returns: Q2 2025
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (March 15, 2021) |
iProfile Private Discretionary – Global Equity Series I | 2.89
| 5.01
| 5.89
| 16.33
| 17.53
| 10.63
|
Portfolio overview
The iProfile™ Discretionary Portfolio – Global Equity rose over the period (5.0%) and outperformed the Global Equity peer group median (4.9%). The portfolio benefited most from gains in its traditional equity components. Low-volatility equities and alternatives detracted.
Many equity indices, including the S&P 500 Index, the S&P/TSX Composite Index, and the MSCI EAFE Index reached record highs during the period. Equities advanced almost steadily after pivoting from a sharp selloff in early April that was triggered by U.S. President Donald Trump’s so-called “Liberation Day” tariff announcement. Trade policy uncertainty remained high throughout the period and geopolitical tensions flared up, especially concerning fears that Iran might block oil traffic through the Strait of Hormuz in reaction to the U.S. bombing of its nuclear facilities. However, equities continued to push to new highs right up to the final days of the quarter. As a result, the portfolio saw solid gains from the iProfile Canadian Equity Private Pool (7.7%), iProfile U.S. Equity Private Pool (4.4%), iProfile International Equity Private Pool (6.0%), iProfile Emerging Markets Private Pool (8.3%), iProfile ETF Private Pool (5.6%) and iProfile Active Allocation Pool IV (5.9%).
The iProfile Emerging Markets Private Pool was the top performer. It outperformed the MSCI Emerging Markets Index Total Return (Net) $ CAD as all component mandates in the pool outperformed the MSCI benchmark. The pool’s performance benefited most from an overweight allocation to, and stock selection in, South Korea, one of the top performing markets in the quarter. The iProfile Canadian Equity Private Pool was the second-best performing component. The Canadian equity pool benefited from its underweight exposure to the energy sector, a position common to several of its component segments. However, it lagged the S&P/TSX Composite Index mainly due to stock selection in the energy, financials and information technology sectors.
The iProfile U.S. Equity Private Pool was the weakest performer among the portfolio’s main regional equity pools. However, it is the portfolio’s largest component, comprising nearly one third of the portfolio, and therefore was the top contributor to overall results. The information technology sector, which comprises more than one quarter of the pool and was the top-performing sector in the benchmark S&P 500 Index, more than accounted for all of the pool’s net gains. However, the underweight exposure to the information technology sector relative to the index was a chief detractor from relative returns. Stock selection in the health care sector was also a detractor.
The iProfile Active Allocation Pool IV and iProfile ETF Private Pool, as global equity portfolios, outperformed the U.S. equity pool and benchmark. However, they underperformed the Canadian, international and emerging markets equities pools. The iProfile Active Allocation Pool IV outperformed the MSCI World Index, in part due to its underweight exposure to U.S. equities.
The iProfile Alternatives Private Pool (-3.2%) was the portfolio’s top detractor. Both pool components – the Mackenzie Global Macro Fund and the Wellington – IG Global Equity Hedge Pool – declined. The Wellington pool fell mainly due to its short exposures to equity futures as stock prices rose, and the Mackenzie fund fell mainly due to short positions in several currencies as they rallied versus the U.S. dollar. The iProfile Low Volatility Private Pool (-0.5%) also declined due to the drop in U.S. low-volatility stocks. Low-volatility equity indices outside the U.S. rose modestly but underperformed their non-low-volatility counterparts in all regions.
Market overview: volatility gripped global markets during "Liberation Day" fallout
The second quarter of 2025 served as a stark lesson in the market’s ability to absorb sharp, politically driven shocks. The period was dominated by the U.S. administration's chaotic trade policy, beginning with the April announcement of sweeping tariffs, which sent global equities into a tailspin. The S&P 500 Index plunged into correction territory, marking its most significant retreat since March 2020.
This initial panic sent investors fleeing to safe havens, a move clearly reflected in the 5.7% surge in gold prices this quarter. However, the administration’s subsequent and rapid reversal of the policy triggered an equally dramatic V-shaped recovery. The initial fear that gripped the market evaporated, and major equity indices charged back into positive territory
Throughout this turbulence, central banks remained on the sidelines. The U.S. Federal Reserve (the Fed) and the Bank of Canada (BoC) held rates steady, caught between the inflationary threat of tariffs and the risk of a corresponding economic slowdown.
Market outlook: solid reasons for optimism, despite ongoing uncertainty
The world is rarely free of turmoil. Over the past five years, the world economy has faced a global pandemic, multi-decade inflation highs, aggressive interest rate hikes and significant international conflicts. Yet, despite these challenges, markets have demonstrated resilience as businesses adapt, consumers adjust, and economies discover new pathways to growth.
Looking ahead, trade policy clarity and its influence on corporate earnings will be key drivers of market sentiment. Attractive equity valuations and the potential for mid-teens earnings growth provide reasons for optimism, though uncertainty around policy and geopolitical risks remains a headwind. Central banks are expected to shift toward more accommodative monetary policy, with rate cuts anticipated in some regions. This could support economic growth while stabilizing markets, particularly in fixed income.
Persistent volatility may weigh on sentiment in the near term, especially in areas more exposed to trade tensions. However, as these risks moderate, the outlook should improve, with opportunities emerging in sectors poised to benefit from easing uncertainty. It’s important to remember that volatility, while challenging, can also create opportunities.
To discuss your investment strategy, speak to your IG Advisor.
Commissions, fees and expenses may be associated with mutual fund investments and the use of iProfileTM Managed Asset Program. Read the prospectus and speak to an IG Advisor before investing. The rate of return is the historical annual compounded total return as of June 30, 2025, including changes in value and reinvestment of all dividends or distributions. It does not take into account sales, redemption, distribution, optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, values change frequently and past performance may not be repeated. An asset allocation service, iProfile is a managed asset program for clients with a minimum of $250,000 invested in the iProfile program. Mutual funds and investment products and services are offered through the Mutual Fund Division of IG Wealth Management Inc. (in Quebec, a firm in financial planning). And additional investment products and brokerage services are offered through the Investment Dealer, IG Wealth Management Inc. (in Quebec, a firm in financial planning), a member of the Canadian Investor Protection Fund.
This commentary may contain forward-looking information which reflects our or third-party current expectations or forecasts of future events. Forward-looking information is inherently subject to, among other things, risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed herein. These risks, uncertainties and assumptions include, without limitation, general economic, political and market factors, interest and foreign exchange rates, the volatility of equity and capital markets, business competition, technological change, changes in government regulations, changes in tax laws, unexpected judicial or regulatory proceedings and catastrophic events. Please consider these and other factors carefully and do not place undue reliance on forward-looking information. The forward-looking information contained herein is current only as of June 30, 2025. There should be no expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.
This commentary is published by IG Wealth Management. It represents the views of our Portfolio Managers and is provided as a general source of information. It is not intended to provide investment advice or as an endorsement of any investment. Some of the securities mentioned may be owned by IG Wealth Management or its mutual funds, or by portfolios managed by our external advisors. Every effort has been made to ensure that the material contained in the commentary is accurate at the time of publication, however, IG Wealth Management cannot guarantee the accuracy or the completeness of such material and accepts no responsibility for any loss arising from any use of or reliance on the information contained herein.
Trademarks, including IG Wealth Management and IG Private Wealth Management, are owned by IGM Financial Inc. and licensed to subsidiary corporations.
©2025 IGWM Inc.