iProfile™ Private Discretionary Portfolio – Global Equity Balanced
Q1 commentary 2026
Highlights
① The portfolio rose over the period, with positive contributions coming from most iProfile pools. Canadian equities performed best, and U.S. equity exposure lagged.
② The oil shock drove turbulence, as commodities dominated inflation fears.
③ Global growth expectations will be adjusted if conflict extends beyond summer.
Portfolio returns: Q1 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (March 15, 2021) |
iProfile Private Discretionary –
| -3.71 | 0.50 | 0.50 | 13.42 | 12.80 | 8.69 |
Portfolio overview
The iProfile Discretionary Portfolio – Global Equity Balanced rose over the period (by 0.5%) and outperformed its global equity balanced peer group median (-0.3%). Most component iProfile pools delivered positive returns, with the iProfile Emerging Markets Private Pool performing best, while the iProfile U.S. Equity Private Pool delivered a negative return. The portfolio benefited most from its Canadian equity components and international equity exposures.
Global equity markets experienced heightened volatility during the first quarter of 2026, with significant divergence across regions. Market volatility increased in March 2026, as Middle East conflict escalated and energy prices spiked. The S&P 500 Index declined by 4.3%, while the S&P/TSX Composite Index advanced by 3.3%, benefiting from resilient commodity prices and surging gold prices to record levels (all figures in Canadian dollars, total return). International markets showed weakness, with developed markets under pressure, while emerging markets held relatively steady. As a result, the portfolio's main equity components had a widely diverging performance, with the iProfile Emerging Markets Private Pool (5.6%) and iProfile Canadian Equity Private Pool (2.8%) leading gains, followed by the iProfile International Equity Private Pool (2.0%), while the iProfile U.S. Equity Private Pool (-3.2%) and iProfile ETF Private Pool (-0.7%) declined.
The iProfile Emerging Markets Private Pool was the top-performing equity component on an absolute basis, delivering a strong 5.8% return and outperforming the MSCI Emerging Markets Index (in Canadian dollars, total net return). All three of the component mandates in the pool delivered positive gains, with strength concentrated in South Korea and Taiwan, benefiting from robust semiconductor demand related to artificial intelligence. However, the pool's overall contribution to portfolio gains was limited by its relatively low weight allocation of approximately 3.8%. The pool's absolute performance benefited most from overweight allocation to, and stock selection in, the information technology sector, which accounted for the majority of the pool's total return, with roughly half of the gains coming from holdings in the semiconductor industry group.
The Canadian equity pools were the top equity contributors to total return, including the Canadian low volatility segment within the low volatility pools. The iProfile Canadian Equity Private Pool contributed most, in part due to its meaningful weight of 17.2%, delivering a 2.8% return that significantly outperformed U.S. equity markets. The pool benefited from strength in energy and materials sectors amid resilient commodity prices and a surge in gold prices. The iProfile International Equity Private Pool also contributed meaningfully, generating a 2% return, despite broader weakness in developed international markets, with the pool benefiting from selective positioning in European and Asian markets. In contrast, the iProfile U.S. Equity Private Pool significantly detracted from performance, declining by 3.2% as U.S. large-cap technology stocks faced pressure from concerns about AI-related spending sustainability and elevated valuations. The pool's substantial weight of approximately 14.9% magnified this negative impact on total portfolio returns.
The iProfile Fixed Income Private Pool, representing approximately 37% of the portfolio, declined modestly by 0.2% during the quarter, providing important stability amid equity market volatility, despite the modest negative return. Rising energy prices related to Middle East tensions in March created additional pressure across fixed income markets. High-yield bond spreads initially reached multi-year lows before widening again late in the quarter. The IG Mackenzie Real Property Fund contributed positively with a 0.84% return, providing a source of positive returns during a challenging quarter for traditional bond markets.
Market overview: oil shock drove turbulence, commodities dominated inflation fears
The first quarter of 2026 began with supportive economic momentum; improving manufacturing, a stabilizing U.S. housing backdrop and contained inflation. However, this quickly pivoted as the conflict in the Middle-East involving Iran — along with trade disruption around the Strait of Hormuz — pushed energy commodities higher. The energy shock drove volatility across global equities, yet the underlying backdrop proved more resilient than headlines implied, reinforcing the value of diversification.
Canadian equities were resilient, as higher crude oil prices supported the energy sector and helped offset weaknesses in rate-sensitive areas. Defensive sectors, dividends and real-asset exposure provided additional insulation versus many global peers. U.S. fundamentals remained solid, but sentiment weakened as oil lifted inflation expectations. Investors rotated away from expensive, rate-sensitive growth stocks, making performance more about a valuation reset than deteriorating earnings.
Market outlook: global growth expectations will be adjusted if conflict extends beyond summer
Looking ahead, oil and energy prices remain the central swing factor. A credible path to de-escalation could shift attention back to the positive economic cycle evident early in the quarter; a prolonged disruption would maintain inflation uncertainty and elevated volatility.
In this environment, commodity producers and value‑oriented equities may provide resilience, while long‑duration assets and oil‑importing regions face greater sensitivity to energy-price fluctuations.
Diversification and flexibility remain central to portfolio construction
Canadian equities offer exposure to energy and materials supported by global supply constraints. International developed and emerging markets present valuation‑driven opportunities and help diversify away from concentrated U.S. equity exposure.
Within fixed income, short‑ to intermediate-duration strategies can balance yield and interest‑rate risk, complemented by high‑quality corporate bonds for disciplined income generation. Key areas to watch will be central bank policies, as they look at the impact of higher energy costs and their indirect tax on the consumer.
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 March 31, 2026, 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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