Portfolio returns: Q4 2025
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. July 12, 2013 |
IG Core Portfolio – Balanced F | -0.44
| 1.45
| 10.79
| 10.79
| 11.39
| 7.13
| 6.48
| 7.11
|
Quartile rankings | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
IG Core Portfolio – Balanced Series F
Q4 commentary 2025
Highlights
① The portfolio rose over the period, with positive contributions from most of the component funds and pools, especially Canadian equities and select global equities.
② Strong equity performance was led by Canadian equities and supported by diversified global equity exposures.
③ Fixed income delivered modest overall results, with strength in high-yield and global credit offset by weaker Canadian and sovereign bond exposures.
Portfolio Overview
The IG Core Portfolio – Balanced rose by 1.7% over the fourth quarter of 2025 and outperformed its global neutral balanced peer group median (0.9%). Equities were the primary driver of performance, with Canadian, U.S. and select global equity exposures contributing positively. Canadian equities were the largest single contributor, reflecting both strong absolute returns and meaningful portfolio weight. U.S. equity allocations also added to results, alongside gains from European, Pan-Asian and emerging market equity exposures. In aggregate, equity holdings more than offset weaker areas of the portfolio.
Many equity indices, including the S&P 500 Index (total return 1.1% in Canadian dollars), the S&P/TSX Composite Index (total return 6.3% in Canadian dollars) and the Dow Jones Industrial Average Index (total return 2.3% in Canadian dollars) initially dropped, following their record high performance in Q3 2025, but recovered to deliver positive results in the fourth quarter. Most other global markets were also higher during the fourth quarter of 2025, supported by continued resilience in economic activity and improved investor confidence. Market sentiment benefited from easing trade-related uncertainty and signs of stabilization in global supply chains. Meanwhile, economic data, mainly in the U.S., remained broadly supportive. Moderating inflation trends allowed several major central banks, including the U.S. Federal Reserve, the Bank of Canada and the Bank of England, to adopt a more accommodative policy stance, reinforcing expectations for lower interest rates. Against this backdrop, equity markets advanced steadily over this quarter, contributing positively across the portfolio’s equity allocations.
Equities were the primary driver of performance, with Canadian and select global equity exposures contributing most to results. The Mackenzie-IG Canadian Equity Pool was the top individual contributor, reflecting both strong absolute performance and its meaningful portfolio weight. Additional positive contributions came from the Fidelity-IG Canadian Equity Pool, IG Mackenzie European Equity Strategies, the JPMorgan-IG Emerging Markets Pool and diversified allocations within the BlackRock-IG Active Allocation Pool II.
Fixed income contributed modestly overall, despite representing more than 30% of the portfolio. Performance across fixed income was uneven, with gains from global bonds, corporate credit, floating-rate strategies and high yield partially offset by weakness in Canadian and sovereign bond exposures. The Putnam-IG High Yield Income Pool was the strongest-performing fixed income component, benefiting from narrowing credit spreads and strong risk sentiment during the quarter. By contrast, the Mackenzie-IG Canadian Bond Pool, the IG Mackenzie Sovereign Bond Fund and the IG Mackenzie Real Property Fund detracted modestly from returns.
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: easing cycle creates supportive backdrop
Investors today face a familiar challenge: distinguishing meaningful economic signals from the constant noise that surrounds the market. While headlines continue to highlight pockets of uncertainty, from uneven labour trends to temporary slowdowns in specific sectors, the broader picture is far more constructive. The underlying fundamentals remain resilient, and as we enter 2026, clarity is emerging not from the absence of volatility, but from the strength of the economic foundation beneath it.
The economic cycle is still intact and evolving, supported by a combination of monetary easing, ongoing fiscal expansion, rapid advances in AI‑driven productivity and the durability of the consumer. These forces are not speculative; they are measurable developments that continue to shape a stable and supportive backdrop for markets. At the same time, corporate fundamentals remain solid, reflecting the adaptability and efficiency that have defined this stage of the cycle. Collectively, these pillars provide a robust foundation for the year ahead, underscoring a market environment driven by structural strength rather than short‑term volatility.
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