TORONTO, June 8 /CNW/ - Mackenzie Financial Corporation (Mackenzie
Investments) today announced a proposal to change its method of charging
operating expenses to each of the Mackenzie funds, resulting in lower expenses
for investors and greater fee predictability and increased transparency once
Beginning August 1, 2007, assuming the proposal is approved by fund
investors, Mackenzie Investments will bear all of the operating expenses of
the Mackenzie funds other than GST and certain specified fund costs(1) in
return for fixed rate administration fee established for each fund.
"We are pleased to continue to provide a quality service to the Mackenzie
funds and their investors at competitive and predictable fees," said Charles
R. Sims, President and Chief Executive Officer of Mackenzie Financial
Corporation. "The management expense ratios of all the Mackenzie retail funds
will be lower than current published management expense ratios once this
proposal is effective," said Mr. Sims.
Each fund's management expense ratio will consist of the fund management
fee, the proposed fixed rate administration fee, GST and other fund costs,
expressed as a percentage of the fund's average net assets for the year.
The fixed administration fee will replace the current method under which
expenses are charged or allocated to the Mackenzie funds.
Under the proposal, the fixed rate administration fee will range from
0.14% to 0.31% of the respective funds assets under management, depending on
the fund and its investment objectives. The fee will be 0.14% to 0.20% for
money market and fixed income funds, 0.21% to 0.24% for balanced and domestic
equity funds, and 0.24% to 0.31% for U.S., global and specialty equity funds.
Detailed information about the impact of the fixed rate administration
fee by fund can be found at www.mackenziefinancial.com/mer.
Mackenzie Investments referred the proposal to the Mackenzie Funds'
Independent Review Committee and to its Board of Directors. Earlier today, The
Independent Review Committee made a recommendation to the Board of Directors
of Mackenzie Investments that, in its view, the result of the proposal is fair
and reasonable to all Funds and their investors. The Board of Directors
subsequently approved the proposal to be mailed to fund investors.
Investors of all Mackenzie funds will receive an information circular
with full details of the proposal and a proxy in early July as required by
securities regulators. A special meeting of fund investors will be held on
August 7, 2007 to vote on the proposal. If the proposal is approved, the fixed
administration fee will become effective on August 1, 2007.
Mackenzie Investments: Mackenzie Investments was founded in 1967, and is
a leading investment management firm providing investment advisory and related
services. With $65.0 billion in assets under management, 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 $126 billion in total assets under
Commissions, trailing commissions, management fees and expenses all may
be associated with mutual fund investments. Please read the prospectus
before investing. Mutual funds are not guaranteed, their values change
frequently and past performance may not be repeated.
(1) Other fund costs include other taxes, borrowing costs, fees and
expenses of the Mackenzie Funds' Independent Review Committee and any
new regulatory charges
For further information:
For further information: Catharine Marion or Mike Langdon, Environics
Communications, firstname.lastname@example.org; email@example.com, (416)
969-2809; (416) 969-2820