By Rudy Luukko | 29/01/18

Mackenzie Investments today launched five portfolios of exchange-traded funds that will invest actively in a "full spectrum" of the company's active, strategic beta and newly launched passive index ETFs.

About the Author
Rudy Luukko is editor, investment and personal finance, at Morningstar Canada. Before joining Morningstar in 2004, he worked as an editor and writer for various general, specialty and institutional media. He holds a Canadian Investment Manager (CIM) designation and a Bachelor of Journalism degree from Carleton University. A former chair and founding member of the Canadian Investment Funds Standards Committee (CIFSC), he has also co-authored courses for the Canadian Securities Institute. He welcomes your comments at rudy.luukko@morningstar.com but cannot provide individual advice. Follow Rudy on Twitter: @RudyLuukko

The portfolios are managed by Mackenzie's Symmetry asset-allocation team, who will employ strategic and tactical asset allocation along with active currency management. The managers can vary the target asset allocations by plus or minus 10 percentage points. Since the portfolios are structured as mutual funds, they can be purchased through mutual-fund dealers, the vast majority of whom are not licensed to deal directly in ETFs.

The management fees for all but one of the portfolios, not including administration fees and other costs, are 1.60% for Series A sold through commissioned dealers, 0.85% for Series D for discount-brokerage accounts, and 0.60% for fee-based advisory accounts. For Mackenzie Conservative Income ETF Portfolio, the management fee is 1.30% for Series A, 0.80% for Series D and 0.55% for Series F. Reduced-fee series for high-net-worth accounts are also offered, as are several series that offer fixed-rate distributions.

Trailer commissions range up to 1%, depending on the sales option and the portfolio fund, but Mackenzie provides an avenue for investors to negotiate a reduced trailer fee and be charged a correspondingly lower management fee. This is accomplished by having the dealer submit a form to Mackenzie specifying the reduced trailing commissions they are willing to accept.

Target mix
FundsFixed IncomeEquity
Mackenzie Conservative Income ETF Portfolio75%25%
Mackenzie Conservative ETF Portfolio65%35%
Mackenzie Balanced ETF Portfolio50%50%
Mackenzie Moderate Growth ETF Portfolio40%60%
Mackenzie Growth ETF Portfolio75%25%
Source: Mackenzie Investments

 

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