Mackenzie Investments to cap mutual funds impacted by the 2013 Federal Budget announcement

TORONTO, April 5, 2013 /CNW/ - The 2013 Federal Budget proposed changes to Canadian tax laws that will impact the ability of investors to obtain tax-efficient exposure to a variety of investments. Many investment funds use these "character conversion transactions," including certain funds managed by Mackenzie Financial Corporation (Mackenzie Investments).

Mackenzie Investments continues to assess the budget proposal and its potential impact. At this time it is believed to be in the best interests of existing investors in these impacted funds to suspend further purchases until there is greater guidance from the federal government regarding this proposal. Once all of the details are known, Mackenzie Investments will determine the best long-term course of action for these funds.

While the federal government has not yet provided full clarity on how it plans to implement the proposal, transactions in place prior to March 21, 2013 are expected to remain tax-efficient until their expiration dates. This would benefit most of the Mackenzie funds listed below. Except for Mackenzie Sentinel Managed Return Class, which was not using such transactions as of March 21, and Quadrus Fixed Income Corporate Class, whose transactions expire in 2013, the funds listed below are expected to provide tax-efficient exposure to their underlying portfolios until late 2014 or 2015 when the funds' current transactions expire.

The funds that will be closing imminently to additional investments are:

  • Mackenzie Sentinel Canadian Short-Term Yield Class1
  • Symmetry Balanced Portfolio Class2

  • Mackenzie Sentinel Managed Return Class
  • Symmetry Conservative Income Portfolio Class2

  • Mackenzie Sentinel North American Corporate Bond Class
  • Symmetry Conservative Portfolio Class2

  • Mackenzie Sentinel Strategic Income Class
  • Symmetry Fixed Income Portfolio Class2

  • Mackenzie Sentinel U.S. Short-Term Yield Class3
  • Symmetry Growth Portfolio Class2

  • Quadrus Fixed Income Corporate Class
  • Symmetry Moderate Growth Portfolio Class2

Mackenzie Investments was founded in 1967, and is a leading investment management firm providing investment advisory and related services. With $64.3 billion in assets under management as at March 31, 2013, Mackenzie Investments distributes its investment services through multiple distribution channels to both retail and institutional investors. Mackenzie Investments is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's premier financial services companies with $125.8 billion in total assets under management as at March 31, 2013. For more information, visit mackenzieinvestments.com.

   

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1 This fund invests in Mackenzie Sentinel Canadian Short-Term Yield Corporate Class, which uses character conversion transactions.

2 This fund invests in one or more of Symmetry Canadian Bond Corporate Class, Symmetry Corporate Bond Corporate Class, Symmetry Global Bond Corporate Class and Symmetry Real Return Bond Corporate Class, each of which uses character conversion transactions.

3   This fund invests in Mackenzie Sentinel U.S. Short-Term Yield Corporate Class, which uses character conversion transactions.

 

 

 

SOURCE Mackenzie Investments



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