iProfile™ Private Discretionary Portfolio – Global Neutral Balanced
Q1 commentary 2026
Highlights
① The portfolio rose over the period, with positive contributions coming from most iProfile pools. Canadian equities contributed the most, 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 –
| -3.16 | 0.34 | 0.34 | 10.58 | 10.60 | 7.04 |
Portfolio overview
The iProfile Discretionary Portfolio – Global Neutral Balanced rose over the period (by 0.3%) and outperformed its Global Neutral Balanced peer group median (0.02%). Most component iProfile pools made gains, with the iProfile Canadian Private Pool performing best, and the iProfile Fixed Income Private Pool delivering the weakest return. The portfolio benefited most from its North American equity components.
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 equities but created a more challenging backdrop for traditional global bond mandates. Treasury yields rose during the quarter, as inflation concerns persisted. Within this backdrop, Canadian equity, emerging markets and selected low-volatility exposures were more supportive, while global bonds, U.S. equities and macro-oriented strategies faced headwinds.
The iProfile Canadian Equity Private Pool was the portfolio's top contributor to total return. The pool benefited primarily from strong energy positioning, including overweight exposures to Cenovus Energy and Suncor Energy, as crude oil prices rose sharply during the quarter. These gains were partially offset by weaker results in consumer discretionary and some softness in financials. The iProfile International Equity Private Pool also contributed meaningfully. Its underlying strength came largely from stock selection across communication services, information technology, health care and consumer staples, with support from names such as ASML Holding, Shell, TotalEnergies, Eni and BAE Systems. The iProfile Emerging Markets Private Pool contributed further, despite its smaller weight, as gains from Samsung Electronics, SK hynix, Taiwan Semiconductor Manufacturing and selected Latin American commodity exposures supported results.
The iProfile Active Allocation Private Pool II added to total return. The quarter's result reflected BlackRock's evolving 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. Low-volatility sleeves were also supportive. The BlackRock – IG Low Volatility International Equity Pool contributed positively, despite its relatively small weight, while the low-volatility Canadian and emerging market sleeves also added to returns. 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 portfolio's more defensive fixed income and income-oriented holdings, the IG Mackenzie Mortgage and Short Term Income Fund, IG Mackenzie Real Property Fund, and Mackenzie – IG Canadian Bond Pool each contributed positively, with the real property sleeve supported by improving fundamentals in industrial properties and stable rental conditions.
The iProfile U.S. Equity Private Pool was the most significant detractor from performance. Weakness was concentrated in information technology, health care, communication services and financials, with Microsoft, Micron Technology and Capital One Financial among the notable detractors, although energy holdings such as ConocoPhillips and Shell provided some offset. The PIMCO – IG Global Bond Pool also detracted materially, as rising corporate and government bond yields, sticky inflation and reduced expectations for policy easing weighed on global bonds. Additional modest headwinds came from the Mackenzie Global Macro Fund, the iProfile ETF Private Pool, the Wellington – IG Global Equity Hedge Pool, the IG Manulife Strategic Income Fund and the Mackenzie North American Corporate Bond Fund. In this context, the portfolio's outperformance versus peers was driven by stronger contributions from Canadian, international and emerging equity exposures, active regional allocation and selected low-volatility sleeves, 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.
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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