New mutual funds offer exposure to inflation-resilient assets and new U.S. dollar investment opportunities
Mackenzie Investments has augmented its product shelf with two new funds.
The Mackenzie USD US Mid Cap Opportunities Fund broadens the company's selection of US dollar funds, while the Mackenzie Inflation-Focused Fund is made to assist Canadian investors in reducing the effects of inflation on their portfolios.
By increasing exposure to assets that are less sensitive to inflation, the Mackenzie Inflation-Focused Fund provides Canadians with a way to help diversify their portfolios and potentially reduce the impact of inflation on investment returns.
The fund will invest in a variety of commodities, fixed income securities, and stocks that are anticipated to work well together to withstand inflation. Actively managed by portfolio managers from Mackenzie's Resource and Fixed Income boutiques, it will make tactical changes to its asset allocation based on prevailing inflation characteristics as determined by a proprietary model and fundamental research.
“With this new Fund, we aim to mitigate the impact of inflation by tactically allocating across asset classes that perform well during inflationary periods, while tilting back to a more traditional 60-40 balanced portfolio when inflation is benign," Benoit Gervais, Senior Vice President, Portfolio Manager and Head of the Resource Team at Mackenzie Investments said in a statement.
The fund will target an asset mix of 40–60% equity, 40–60% fixed income, and 0–10% commodities. It may make investments in other asset classes with a track record of performing well in inflationary conditions.
Meanwhile, the Mackenzie USD US Mid Cap Opportunities Fund is a true U.S. dollar fund that offers Canadians the chance to invest US dollars and benefit from growth opportunities in the US.
According to Sonny Aggarwal, vice president and portfolio manager at Mackenzie Investments, "This new Fund offers Canadian investors holding U.S. currency an effective opportunity to get invested and take advantage of mid-cap growth opportunities in the U.S. economy."
It enables Canadian investors to make direct U.S. dollar investments, cutting out exchange fees and reducing the effects of currency hedging.
The fund is designed to provide long-term capital growth by investing primarily in equity securities of mid-capitalization U.S. companies, with an emphasis on those with strong management, promising growth, and appealing financial metrics.
It will have the same holdings as the current Mackenzie US Mid Cap Opportunities Fund, but will be managed as a separate asset pool.
"The Mackenzie Growth Team focuses on long-term success and sustainable growth through attention to valuation. This new Fund delivers on those principles while adding flexibility for investors with diverse needs," concluded Aggarwal.
