Portfolio returns: Q3 2026
| Total Return | 1M | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inc. (Jan 30, 2023) |
IG Target Education 2040 Portfolio F | -0.08
| 1.70
| 15.06
| 17.65
| 20.63
| 16.87
| ||
Quartile rankings | 1 | 1 | 1 | 1 | 1 |
IG Target Education 2040 Portfolio Series F
Q3 commentary 2026
Highlights
① The Target Education 2040 portfolio outperformed its benchmark over the quarter, net of underlying fund and ETF fees.
② Country rotation strategy, sector rotation strategy and active asset allocation positioning all contributed to performance over the quarter.
③ Manager selection also delivered positive returns over the period, with allocations to the U.S. and Canadian equity funds contributing to the outperformance.
Portfolio Overview
The IG Target Education 2040 outperformed its benchmark over the quarter.
The return from country rotation positioning was positive, driven by the overweight exposures to Japan and Korea. Sector rotation also contributed positively, led by overweight allocations to information technology and energy. Asset allocation positioning further supported quarterly results, with the underweight to developed market duration and overweight to Japanese equities among the key drivers of performance.
Externally managed active equity strategies also made a positive contribution to performance during the quarter.
Market overview: earnings growth provided a powerful tailwind for equities
The third quarter showed that the current business cycle still has support, but risks have shifted. Growth held up, earnings improved and corporate investment remained firm, but higher oil prices, persistent inflation and rising long-term yields made the path forward less certain. Equities advanced as earnings provided fundamental support, even as higher rates raised the bar for further gains.
Canadian equities benefited from gains in resources and financials. Higher oil prices supported energy, while precious-metals companies were among the strongest performers. Bank earnings were supported by capital-markets activity, trading income and contained credit costs. U.S. equities also advanced, supported by strong earnings and continued technology investment. Higher yields weighed on more rate-sensitive areas.
International markets remained constructive overall, with parts of Asia benefiting from continued demand across the AI technology supply chain. Fixed income faced greater pressure as rising government bond yields outweighed coupon income, while credit remained comparatively resilient. Across markets, the central tension increasingly became earnings strength versus higher inflation and interest rates.
Market outlook: the rise of fiscal and investment-led growth
The third quarter reinforced a global environment increasingly shaped by fiscal expansion, strategic investment and competition for capital. While concerns around trade policy, geopolitical tensions and slowing global growth periodically weighed on market sentiment, economic activity remained supported by continued investment in artificial intelligence infrastructure, industrial capacity and defence-related spending. Across developed markets, governments are playing a larger role in directing capital toward domestic priorities, contributing to rising financing needs and increased demand for investment capital. At the same time, inflation has generally remained more contained than many investors feared, allowing growth to remain resilient despite higher interest rates and tighter financial conditions. We expect regional divergence to remain an important theme, with the United States supported by strong private-sector investment and innovation, Europe benefiting from fiscal expansion and defence spending initiatives, Japan supported by domestic investment and policy normalization, and China continuing to face challenges from weaker domestic demand despite ongoing policy support.
Our portfolio positioning reflects these themes. Within fixed income, we remain cautious on long-duration developed market sovereign bonds, where elevated issuance and financing needs may continue to place upward pressure on yields. Within equities, we favour regions and sectors supported by long-term investment trends, including artificial intelligence, infrastructure, industrial development and energy security. We continue to emphasize diversification and active asset allocation amid ongoing policy uncertainty and the potential for periods of elevated market volatility.
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Commissions, fees and expenses may be associated with mutual fund investments. 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, 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 securityholder that would have reduced returns. Mutual funds are not guaranteed, values change frequently and past performance may not be repeated. 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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