iProfile™ Private Discretionary Portfolio – Global Equity
Q3 commentary 2025
Highlights
① The portfolio rose over the period, with positive contributions coming from all iProfile pools. Emerging market equities performed best, and U.S. equities contributed the most.
② Balancing geopolitical uncertainty with positive economic fundamentals.
③ Broad diversification remains the best way to handle mixed market conditions.
Portfolio returns: Q3 2025
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (March 15, 2021) |
iProfile Private Discretionary – Global Equity Series I | 4.07
| 8.30
| 14.68
| 19.26
| 20.62
| 11.96
|
Portfolio overview
The iProfile™ Discretionary Portfolio – Global Equity rose over the period (by 8.3%) 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.
Market overview: signs of optimism emerge, despite the noise during "Liberation Day" fallout
The third quarter delivered broad gains across asset classes, with market performance largely overriding a backdrop of cautious sentiment. Investors looked past persistent trade policy headlines, increasingly treating the U.S. administration's tariff policy as noise rather than a core risk. The primary catalysts for the positive performance were a subtle shift toward lower-interest-rate expectations and resilient corporate earnings.
Signals from the U.S. Federal Reserve of imminent rate cuts were followed by a quarter percentage cut in September. Government bond yields eased into the quarter's end, supporting bond prices, while corporate bonds outperformed government bonds.
Market outlook: solid reasons for optimism, despite ongoing uncertainty
Looking ahead, the normalization of inflation is a key development, providing central banks with the flexibility to begin an easing cycle over the next six to 12 months. This anticipated shift toward more accommodative monetary policy is expected to lower borrowing costs, creating a supportive foundation for economic activity.
This should help the macroeconomic environment sustain corporate strength. Earnings are projected to remain robust, building on a consistent trend of exceeding expectations. Resilient corporate profitability continues to be a primary driver of market performance.
The combination of impending rate cuts and durable earnings growth establishes a constructive outlook for equities. This environment reinforces the principle that focusing on underlying fundamentals, rather than reacting to short-term market volatility, is a prudent strategy for capturing future growth potential.
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 September 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.
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