iProfile™ Private Discretionary Portfolio – Global Equity
Q4 commentary 2025
Highlights
① The portfolio rose over the period, with positive contributions coming from all iProfile pools. Emerging market equities performed best, and Canadian equities contributed the most.
② Global growth strengthened as inflation eased, and policy turned supportive.
③ Equities and quality fixed income remain positioned for growth.
Portfolio returns: Q4 2025
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (March 15, 2021) |
iProfile Private Discretionary – Global Equity Series I | -0.35
| 2.16
| 17.15
| 17.15
| 18.41
| 11.79
|
Portfolio overview
The iProfile Discretionary Portfolio – Global Equity rose over the period (by 2.3%) and outperformed its global equity peer group median (-0.8%). 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 maintained their strength through the fourth quarter of 2025, with the S&P/TSX Composite Index (6.3%), S&P 500 (1.1%), Dow Jones Industrial Average (2.3%) and Nasdaq Composite indices (1.2%) delivering positive returns, despite an initial pullback following record highs in Q3 (all figures in Canadian dollars, total return). International markets, as reflected in the MSCI EAFE Index (3.3%) were higher, supported by easing inflation pressures and improving earnings expectations. Developed markets in Europe and Japan advanced, while emerging markets delivered mixed results; South Korea outperformed, whereas China lagged amid persistent economic and policy challenges. Canadian equities outpaced U.S. markets, benefiting from their cyclical sector composition and improving global risk appetite. A weaker U.S. dollar boosted returns for non-U.S. assets and emerging markets. As a result, all the portfolio’s main equity components had mixed gains, with the iProfile Emerging Markets Private Pool (5.5%) and iProfile Canadian Equity Private Pool (4.5%) leading the charge. This was followed by modest returns from other regional pools, including the iProfile U.S. Equity Private Pool (1.2%), iProfile International Equity Private Pool (2.1%) and iProfile ETF Private Pool (2.3%).
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 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 all of the pool’s total return. Roughly half of the gains came from holdings in the semiconductor group, especially in South Korea.
The iProfile Canadian Equity Private Pool is the portfolio’s second largest component, comprising almost 15%, and was the top contributor to total return. With a return of 4.5%, it was the portfolio’s second-best performer. However, the Canadian equity pool lagged the benchmark S&P/TSX Composite Index, mainly due to stock selection in the materials and financials sector. Nonetheless, for most component mandates, relative positioning in the materials sector was a significant driver of performance.
The iProfile Low Volatility Private Pool (0.04%) 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 (0.9%) 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: global growth strengthened, inflation eased, policy supportive
Markets ended the fourth quarter of 2025 on a strong note, capping a year defined by resilience and broad-based gains. Equities led performance, as investors looked beyond policy noise and focused on improving fundamentals. Global markets advanced, supported by steady corporate earnings, easing inflation pressures and a clear shift toward lower interest rates. Canada outperformed most developed peers, driven by strength in materials and financials, while European and Asian markets rebounded on firmer trade activity and renewed investor confidence. In the U.S., equity performance remained positive, led by technology and communication services, with improving breadth across sectors signalling a healthier market foundation.
Fixed income delivered modest but positive returns, as central banks continued to ease policy. Government yields declined on the short end while longer maturities remained stable, allowing coupon income to drive returns. Credit conditions stayed firm, underscoring the strength of corporate balance sheets entering 2026.
Market outlook: equities and quality fixed income positioned for growth
Entering 2026, global markets are positioned on a solid footing. Easing monetary policy and supportive fiscal conditions are expected to sustain growth across major economies. In the U.S., healthy earnings and productivity gains continue to anchor performance. Canada benefits from resource strength and steady financials, while Europe and Asia offer improving valuation opportunities through accelerating trade and industrial expansion. Fixed income markets provide renewed income potential as yields stabilize, and credit quality remains robust.
Overall, conditions favour a balanced, diversified approach.
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