Funds seek to address retirement shortfall potential related to investor conservatism and volatility fears
TORONTO, April 23, 2014 /CNW/ - As demographics shift and the aging of Canada continues, a trend is emerging: there is a disconnect among investors between the desire for portfolio growth to meet their income needs, and the willingness to employ solutions that will get them there. The overriding emotions driving this misalignment are cautiousness and volatility fears.
For example, a recent Mackenzie Investments-commissioned Leger Marketing poll of 1,000 Canadians yet to retire revealed:
- 52% cite market volatility as an impediment to attaining investment goals.
- Over 50% are investing more conservatively (39%), or no longer wanting to invest at all (12%).
- 65% don't know if their investments will last through their lifetimes.
"Reaching long-term financial goals becomes more difficult when people limit themselves to low-yielding, safer products as markets change," said Jeff Carney, President and Chief Executive Officer of Mackenzie Investments. "We are committed to helping investors look ahead to take better control of their financial plans and overcome obstacles to income and portfolio growth."
To help investors get back on track, Mackenzie Investments is launching five new funds and is seeking investor approval to change another fund's objectives. The new funds and the repurposed fund directly address the need for either volatility management or income generation amidst changing market conditions.
Effectively managing volatility is a top priority for investors who want a steadier investment experience. The following fund seeks to address the need to reduce volatility while gaining valuable exposure to equity markets that offer capital growth potential.
Mackenzie US Low Volatility Fund seeks to manage volatility by investing in a portfolio of low-beta stocks. Low-beta stocks are securities that historically have been less volatile than the market as a whole. With the primary objective of reducing volatility, the Fund has been designed to appeal to risk-averse investors who are looking for US equity exposure without the excessive swings in returns.
The following four funds aim to satisfy the growing appetite for regular income:
Mackenzie Investment Grade Floating Rate Fund seeks to provide investors with diversification from traditional fixed-rate fixed income, protection from rising rates and income enhancement through security selection. Sitting at historical lows in recent years, rates may rise over time and traditional investment grade portfolios would likely underperform in such an environment. The Fund will invest primarily in investment-grade floating rate notes and loans, and other floating rate debt instruments.
Mackenzie Global Tactical Bond Fund seeks to diversify along the yield spectrum to uncover attractive yield opportunities. It will invest in a diversified portfolio of fixed income securities of companies and governments around the world. This flexible approach will enable the managers to allocate assets across credit quality, yields, sectors, currencies and countries where they see the best relative value for risk.
Mackenzie US Dividend Fund/Mackenzie US Dividend Registered Fund - These funds seek current income and capital appreciation by investing in quality dividend-paying companies in the US. The managers recognize that the Canadian market is highly concentrated while the US is home to some of the world's most innovative, industry-leading companies. The Funds are available in both non-registered and registered versions to benefit investors. The registered version (i.e., for RRSPs and RRIFs) is expected to be exempt from US withholding taxes.
Mackenzie Global Strategic Income Fund - To complement the new income oriented funds listed above, Mackenzie has proposed changes to the investment objectives of Mackenzie Global Diversified Income Fund. If approved by investors on April 29th, the fund will be renamed Mackenzie Global Strategic Income Fund and will share the same flexible income approach as the proven Mackenzie Strategic Income Fund, but with a broader global focus, and will appeal to those seeking a well-diversified global income strategy. If approved, Mackenzie expects these changes to be effective on April 30, 2014.
Mackenzie Investments is deepening its commitment to investors by offering practical strategies to take control of the investment road ahead. Visit mackenzieinvestments.com/takecontrol for more information.
Mackenzie Investments was founded in 1967, and is a leading investment management firm providing investment advisory and related services. With $68.4 billion in assets under management as at March 31, 2014, 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 over $137 billion in total assets under management as at March 31, 2014. For more information, visit mackenzieinvestments.com.
SOURCE: Mackenzie Investments
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Vice President, Corporate Communications