iA CONNECTED

Alexandre Morin, CFA

BOND (iA)
Geopolitical volatility weighs on performance

• Our underweight in federal bonds and exposure to U.S. high-yield bonds detracted from absolute and relative results as spreads widened.
• As inflation concerns pushed yields higher, we tactically increased duration by adding 5-year U.S. Treasury futures and we increased exposure to higher - yielding government bonds (Mexico, New Zealand, and Australia).
• Volatility is expected to remain elevated, underscoring the importance of closely monitoring oil-driven inflation pressures and staying agile on duration and credit.

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FIXED INCOME MANAGED PORTFOLIO (iA)
Geopolitical stress drives modest underperformance

• The longstanding overweight in credit hurt performance as credit spreads widened. Moreover, Pimco Monthly Income and Agile Total Return Bond weighed on relative results.
• We tactically increased duration as rates moved higher and valuations became more attractive, especially the intermediate part of the U.S. yield curve.
• Volatility is expected to remain elevated, underscoring the importance of staying agile on duration and credit.

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Nicolas Caron, M.Fin, CFA

David Caron, MSc, CFA, CPA 

CANADIAN EQUITY SMALL CAP (iA)
Small caps resume their outperformance

• Canadian small caps delivered a strong start to the year, with energy as a top contributor. Supported by effective asset allocation, the fund outperformed the index gross of fees.
• Portfolio activity was driven by rebalancing and a downsizing of the materials sector. We reduced our exposure to gold miners, such as Iamgold, while maintaining exposure to higher-conviction holdings.
• We remained optimistic but continued to target high-quality companies with strong balance sheets because inflation risks and trade negotiations could dampen investor sentiment.

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Nicolas Caron, M.Fin, CFA

CANADIAN EQUITY GROWTH (iA)
Canadian market continues to show resilience

• The fund slightly underperformed its benchmark owing to allocation and security selection. Canadian equities posted positive first-quarter returns, with the TSX outperforming the S&P 500.
• Lower-conviction holdings were reduced to fund higher-conviction opportunities, with K92 Mining replaced by G Mining Ventures and Artemis Gold.
• We remained optimistic but continued to target high-quality companies with strong balance sheets because inflation risks and trade negotiations could dampen investor sentiment.

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Maxime Houde, CFA

Nicolas Caron, M.Fin, CFA

NORTH AMERICAN EQUITY (iA)
First quarter marked by rising volatility from war

• In a volatile start to the year, Canadian equities showed resilience, supported by favourable sector composition. The fund underperformed its benchmark owing to weaker security selection.
• We added high-conviction names, including Royal Caribbean and Chevron, while rotating Canadian materials exposure from B2Gold to DPM Metals, in line with our outlook.
• We remain optimistic but continue to target high-quality companies with strong balance sheets because inflation risks and trade negotiations could dampen investor sentiment.

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Dan Rohinton

GLOBAL DIVIDEND (iA)
Mixed tape, steady approach

• Gains were led by large-cap technology, European consumer names, and health care equipment, partially offset by select technology and information services weakness.
• Portfolio activity was measured, with additions in financials and consumer discretionary funded by exits in health care, specialty finance, and consulting services.
• Against a backdrop of earnings dispersion and uncertain global trade dynamics, the strategy remained valuation-aware and focused on durable cash flows.

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DIVIDEND GROWTH (iA)*
Banks led a mixed quarter

• Strength in Canadian financials and insurance drove returns but was partially offset by select technology and energy infrastructure weakness.
• We increased our domestic energy exposure and exited positions in health care, communication services, and transportation.
• Amid ongoing trade uncertainty and dispersed earnings results, the strategy continued to focus on dividend durability and balance-sheet quality.

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*Underlying fund: Canadian Dividend (iA)

Maxime Houde, CFA

THEMATIC INNOVATION (iA)
Barbell for risk management

• The Fund underperformed its benchmark amid geopolitical uncertainty. Defensive positioning and AI exposure helped, but weak security selection in financials, health care, and consumer discretionary detracted.
• We initiated positions in Royal Caribbean and Meritage Homes to increase exposure to consumer discretionary, added Exxon Mobil for energy exposure, Costco within consumer staples.
• Our strategy continues to emphasize AI-driven growth while selectively adding industrials and energy infrastructure, reflecting our view that market leadership will broaden.

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