Firm moves to merge funds into trust fund equivalents as corporate structure's benefits have been largely eliminated
Mackenzie Investments has announced plans to wind up Mackenzie Financial Capital Corporation (CapitalCorp), which would affect its suite of corporate class funds including some that it manages for Canada Life.
As a result of the wind-up, Mackenzie said it is merging each of its 34 corporate class funds into its corresponding trust fund equivalent on a tax-deferred basis. Each trust fund equivalent has, or will have, an investment objective substantially similar to the merging corporate class fund, and will be managed by the same portfolio management team.
The merging funds include:
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Merging Funds |
|
|
Mackenzie Canadian Dividend Class |
Mackenzie Ivy International Class |
|
Mackenzie Canadian Equity Class |
Mackenzie Maximum Diversification Canada Index Class |
|
Mackenzie Canadian Growth Balanced Class |
Mackenzie Precious Metals Class |
|
Mackenzie Canadian Growth Class |
Mackenzie Private Canadian Focused Equity Pool Class |
|
Mackenzie Canadian Small Cap Class |
Mackenzie Private Global Equity Pool Class |
|
Mackenzie Cundill Canadian Security Class |
Mackenzie Private Income Balanced Pool Class |
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Mackenzie Cundill Value Class |
Mackenzie Private US Equity Pool Class |
|
Mackenzie Emerging Markets Class |
Mackenzie Strategic Income Class |
|
Mackenzie Global Growth Class |
Mackenzie US Growth Class |
|
Mackenzie Global Resource Class |
Mackenzie US Small-Mid Cap Growth Class |
|
Mackenzie Global Small-Mid Cap Equity Class |
Mackenzie US Small-Mid Cap Growth Currency Neutral Class |
|
Mackenzie Gold Bullion Class |
Symmetry Balanced Portfolio Class |
|
Mackenzie Ivy Canadian Balanced Class |
Symmetry Conservative Income Portfolio Class |
|
Mackenzie Ivy European Class |
Symmetry Conservative Portfolio Class |
|
Mackenzie Ivy Foreign Equity Class |
Symmetry Equity Portfolio Class |
|
Mackenzie Ivy Foreign Equity Currency Neutral Class |
Symmetry Growth Portfolio Class |
|
Mackenzie Ivy Global Balanced Class |
Symmetry Moderate Growth Portfolio Class |
The plan to wind up CapitalCorp will also impact six Mackenzie Canada Life corporate class funds:
|
Merging Funds |
|
Mackenzie Emerging Markets Class |
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Mackenzie Global Growth Class |
|
Mackenzie Ivy European Class |
|
Mackenzie Precious Metals Class |
|
Mackenzie Strategic Income Class |
|
Mackenzie US Small-Mid Cap Growth Class |
Each of those corporate class funds will likewise be merged into equivalent trust funds with similar investment objectives. Those trust funds will be managed by Canada Life Investment Management Ltd. (CLIML).
The company said it believes the move will benefit investors as CapitalCorp is in a taxable position. Many of the benefits previously available to corporate class funds, it said, have been erased by “changes to legislation and evolving market trends.”
“All costs and expenses associated with the mergers will be borne by Mackenzie,” the firm said, noting that investors that are on record as having units of the funds as of May 7, 2021, will be mailed an investor notice on or about May 27.
The mergers are expected to take place on or about July 30.
