Mackenzie gets approval for new funds

Mackenzie Investments has received final regulatory approval for the Mackenzie Strategic Bond Fund and the Mackenzie Floating Rate Income Fund. Both are managed by the Mackenzie Fixed Income Team, led by Steve Locke.

Read: Mackenzie announces fund changes

Mackenzie Strategic Bond Fund

• Adding asset classes such as high-yield corporate bonds and floating-rate loans provides opportunity for enhanced yield and higher returns
• This fund is a flexible mandate that can invest in a wide range of fixed-income asset classes
• Its exposure to floating-rate loans can provide protection from rising interest rates—this asset class is difficult for retail investors to access
• Option to receive tax-efficient income

Read: Mackenzie Investments suspends 12 mutual funds

Mackenzie Floating Rate Income Fund

• When benchmark rates rise the interest rate paid on floating rate loans increases as well, offering income enhancement and protection from rising rates
• Floating-rate loans are secured by company assets or collateral, giving these loans “senior secured status”
• The category has provided stable returns (only one negative-return year: 2008) with historically low default rates and high recovery rates
• For greater portfolio diversification, floating-rate vehicles typically have negative correlation with government/investment-grade bonds and low correlation with other asset classes
• Option to receive tax efficient income

Read: Sub-advisor changes for three Quadrus funds

Staff

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