iProfile™ Private Discretionary Portfolio – Global Mid-Neutral Balanced
Q1 commentary 2026
Highlights
① The portfolio rose modestly over the period, with mixed contributions coming from all iProfile pools. Canadian equities contributed the most, while U.S. equity and fixed income 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 – Global Mid-Neutral Balanced Series I | -2.99 | 0.22 | 0.22 | 9.47 | 9.77 | 6.35 |
Portfolio overview
The iProfile Discretionary Portfolio – Global Mid-Neutral Balanced rose modestly over the period (0.2%). The portfolio benefited from strong positive contributions led by the Canadian Pool, followed by the Low-Volatility Pool, the iProfile Active Allocation Private Pool II, the Emerging Markets Pool and the International Pool. These gains were partially offset by weakness in the U.S. Pool, which was the primary detractor, as well as smaller negative contributions from the Alternatives Pool, the iProfile ETF Private Pool and the Fixed Income Pool.
Market conditions were mixed during the quarter, with global equity markets experiencing elevated volatility and fixed income markets pressured by rising yields. The period was shaped by escalating geopolitical tensions in the Middle East and a sharp rise in oil prices, which supported commodity-sensitive equity markets but created a more challenging backdrop for traditional global bond mandates. Within this backdrop, the portfolio's Canadian, emerging markets, active allocation and low-volatility exposures were more supportive, while U.S. equities, alternatives and parts of fixed income faced headwinds.
The Canadian Pool was the portfolio's top contributor to total return. This strength was supported by the same Canadian equity backdrop seen across the broader iProfile platform, where energy positioning was particularly beneficial, as higher oil prices supported names such as Cenovus Energy and Suncor Energy, partly offset by weaker results in consumer discretionary and some softness in financials. The International Pool also contributed positively, with support coming largely from stock selection across communication services, information technology, health care and consumer staples, including holdings such as ASML Holding, Shell, TotalEnergies, Eni and BAE Systems. The Emerging Markets Pool contributed further, benefiting from strong performances from Samsung Electronics, SK hynix, Taiwan Semiconductor Manufacturing and selected Latin American commodity exposures.
The iProfile Active Allocation Private Pool II also added to total return. The quarter's result reflected BlackRock's shifting regional views, beginning with a preference for non-U.S. equities, including Korea, followed by continued conviction in Japan and broader Asian emerging markets, and ending with a more constructive U.S. equity overweight late in the quarter. The Low-Volatility Pool was another meaningful source of support. Within that structure, the BlackRock – IG Low Volatility International Equity Pool was the largest contributor, while the Canadian and emerging markets low-volatility sleeves also contributed positively. More broadly, low-volatility strategies benefited from stronger results in communication services, financials and selective energy holdings during a quarter in which higher-valuation technology and software names corrected. Within the Fixed Income Pool, the strongest positive support came from Private Credit, along with the Mackenzie – IG Canadian Bond Pool, IG Mackenzie Mortgage and Short Term Income Fund, and IG Mackenzie Real Property Fund, which all contributed positively.
The U.S. Pool was the most significant detractor from performance. The broader iProfile U.S. equity commentary indicates that weakness was concentrated in information technology, health care, communication services and financials, with holdings such as Microsoft, Micron Technology and Capital One Financial weighing on results, while energy names, such as ConocoPhillips and Shell, provided some offset. The Alternatives Pool also detracted, reflecting a difficult backdrop for macro and hedged equity strategies, with losses driven primarily by the Mackenzie Global Macro sleeve and additional weakness in the Wellington-IG Global Equity Hedge Pool. The Fixed Income Pool detracted modestly overall, despite its substantial weight, as the PIMCO – IG Global Bond Pool alone detracted materially, more than offsetting positive contributions from private credit, mortgage and short-term income, real property and Canadian bonds. The iProfile ETF Private Pool also detracted. In this context, the portfolio's outperformance versus peers was driven by stronger contributions from Canadian, international and emerging market equities, active regional allocation and low-volatility exposures, which more than offset weakness in U.S. equities and global bonds.
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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