TORONTO, June 18 /CNW/ - In response to strong demand from investors for
a tax-efficient corporate bond fund, Mackenzie Financial Corporation
("Mackenzie Investments") is introducing Mackenzie Sentinel North American
Corporate Bond Class ("the Fund"). Available for purchase on June 19, 2009,
the Fund aims to provide investors with the returns of a high-yield fixed
income fund in a tax-efficient manner managed by Mackenzie Investments.
"Many investors today want to receive steady, reliable income from their
investments, and corporate bond funds can comprise a component of such a
portfolio. However, traditional corporate bond funds distribute interest
income, which is fully taxable," said David Feather, President of Mackenzie
Financial Services Inc. "Mackenzie Sentinel North American Corporate Bond
Class provides investors with the ability to receive tax-efficient monthly
As part of Mackenzie Investment's Capitalcorp structure, Mackenzie
Sentinel North American Corporate Bond Class offers investors the ability to
switch between the Fund and more than 50 other Capitalcorp funds on a
tax-deferred basis. "This is a tremendous advantage for taxable investors, as
they may not pay any taxes until they redeem out of the structure," said
Choice of cash flow options
Mackenzie Sentinel North American Corporate Bond Class investors have the
option of choosing the income stream that best suits their financial planning
requirements. Series A is suitable for investors who are seeking exposure to
the high yield fixed income class, but do not require regular cash flow.
Series T6 securities are designed for investors looking for regular cash
flows, as these securities provide monthly distributions at a rate of 6 per
cent per year, generally in the form of tax-efficient return of capital.
Registered version also available
A registered version of the Fund is also available. Both funds share a
similar mandate; which fund an investor should select depends on the nature of
their account. Mackenzie Sentinel North American Corporate Bond Class is
suitable for non-registered investment accounts, while Mackenzie Sentinel
Registered North American Corporate Bond Fund (the Registered Fund) is only
available for purchase in registered accounts such as RRSPs.
Monthly distributions on the Registered Fund are based on the Fund's net
income for the month and are automatically reinvested in additional securities
of the Registered Fund.
Lead manager for both funds is Dan Bastasic, Vice President, Investments
at Mackenzie. Dan has over 14 years investment experience and has been lead
manager on the top-performing Mackenzie Sentinel Corporate Bond Fund since
Both Mackenzie Sentinel North American Corporate Bond Class and Mackenzie
Sentinel Registered North American Corporate Bond Fund provide investors with
easy access to high yield corporate bonds, an asset class that has
historically provided returns similar to equities, but with half the risk. As
well, high yield corporate bonds have historically outperformed equities
coming out of recessionary periods. "If history is any guide, an investment in
either of these funds appears to be a timely opportunity for investors looking
for income and long-term capital growth," said Feather.
Mackenzie Investments: Mackenzie Investments was founded in 1967, and is
a leading investment management firm providing investment advisory and related
services. With $57.8 billion in assets under management as of May 31, 2009,
Mackenzie Investments distributes its services through a diversified network
of third-party financial advisors. 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 over $108 billion in total
assets under management as of May 31, 2009.
Commissions, trailing commissions, management fees and expenses all may
be associated with mutual fund investments. Please read the prospectus before
investing. The indicated rates of return are the historical annual compounded
total returns including changes in security value and reinvestment of all
dividends or distributions and do not take into account sales, redemption,
distribution or optional charges or income taxes payable by any securityholder
that would have reduced returns. Mutual funds are not guaranteed, their values
change frequently and past performance may not be repeated.
For further information:
For further information: Trish Tervit, Environics Communications Inc.,
(416) 969-2809, email@example.com