Mackenzie North American Value Equity
Mandate commentary
Q1 2026
Highlights
① Positive returns for the mandate, outperforming the benchmark over the period. Energy was the largest contributor to returns.
② The oil shock drove turbulence, as commodities dominated inflation fears.
③ Global growth expectations will be adjusted if conflict extends beyond summer.
Mandate overview
Performance was positive over the period and outperformed the benchmark. The Canadian market outperformed the U.S. market during the period (in local currency terms).
In Canada, positive stock selection in the energy sector contributed positively to returns relative to the benchmark. Stock selection in the industrials sector also contributed positively. Stock selection in consumer discretionary and financials detracted from overall performance.
In the U.S., positive stock selection in industrials and financials were the most significant contributors to performance over the period. This was offset by stock selection in the materials sector.
Mandate: positive returns and outperforming the benchmark.
Performance contributors
Positive stock selection in the U.S. industrials sector contributed positively to performance, as did positive stock selection in the Canadian energy sector.
Overall, stock selection in energy was the largest contributor to returns.
Performance detractors
Negative stock selection in the Canadian consumer discretionary sector was the biggest detractor to relative performance.
Negative stock selection in the U.S. materials sector was also a main detractor to relative performance.
Total gross returns:
Total return | QTD | YTD | 1YR | 3YR | 5YR | SINCE INC. (NOV. 14, 2016) |
MACKENZIE NORTH AMERICAN VALUE EQUITY | 4.02
| 4.02
| 21.93
| 17.84
| 13.58
| 10.50
|
Mandate repositioning
The mandate initiated new positions in Enbridge Inc., Linde plc, Union Pacific Corporation, McKesson Corporation, Analog Devices, Inc., McDonald's Corporation and Akamai Technologies, Inc. over the period.
The mandate eliminated positions in Wells Fargo & Company, Home Depot, Inc., International Business Machines Corporation, Thermo Fisher Scientific Inc., American Express Company and CRH public limited company.
The mandate added to existing positions in Barrick Mining Corporation, Brookfield Infrastructure Corporation and Royal Bank of Canada, among others over the period.
The mandate trimmed existing positions in Canadian Natural Resources Limited, Suncor Energy Inc. and Teck Resources Limited, among others over the period.
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.
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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 March 31, 2026. 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.
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