One year on. The Mackenzie Active Fixed income ETF suite | Mackenzie Investments

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One year on. The Mackenzie Active Fixed Income ETF Suite

On the first anniversary of Mackenzie’s active ETFs, CEO Barry McInerney and SVP Michael Cooke discuss ETFs as important tools for investors and their advisors.

Show transcript

Barry McInerney, President and Chief Executive Officer, Mackenzie Investments

I’m Barry McInerney, the President and Chief Executive Officer at Mackenzie Investments. We just celebrated our first anniversary of the launch of the Mackenzie ETFs, which is very exciting to us, particularly during the 50th anniversary of Mackenzie overall.

The business is doing very, very well. The global ETF marketplace, which is one of the fastest growing segments of the global investment management industry, is approaching $5 trillion in assets and ETF assets in Canada have now surpassed $120 billion.

We’re very excited to be in this business. We launched because we felt that, as an investment solutions provider, it’s important for Mackenzie to offer a variety of investment vehicles to the marketplace, to advisors and to investors to access our investment capabilities. ETFs, which are extremely effective and efficient investment vehicles, allow investors and advisors to now access our investment capabilities in a new way – standalone or in tandem with mutual funds and other investment vehicles.

Michael Cooke, Senior Vice President and Head of Exchange Traded Funds, Mackenzie Investments

Our intention with the Mackenzie ETF platform was to look at our active investment management capabilities and to extend those capabilities to a broader audience of advisors and investors. I believe we have some of the best active fixed income investment management capabilities in Canada. We thought that would lend well to the ETF structure, where more and more advisors and investors are seeing utility given the cost effectiveness, the liquidity, and the ease with which you can buy fixed income ETFs throughout the trading day. And when you introduce the added benefit of active management, as it relates to fixed income, then I think again, Mackenzie’s core competency in that asset class has been a tremendous recipe for success for Mackenzie and for our clients.

We saw additional demand for a high yield strategy, which serves a really nice complement to each of the four original products we have. It caters to the needs of investors that are looking for diversified sources of current income. It helps to just build a better balanced portfolio overall and as many investors now are seeking diversified sources of current income, we thought this was a good complement to the existing Mackenzie active fixed income ETF lineup.

If you look at our capabilities in active management for a start, fixed income and the original suite of products that we launched, also our reputation for innovation, which you see in the form of our TOBAM smart beta ETFs, we think we are bringing something unique to the ETF market. We’re providing choice as investors look increasingly to exchange traded funds. We’re giving them more tools to use with active fixed income. We’re giving them innovation and diversified exposure in equity and we’re very mindful of the needs of advisors and investors in Canada.

Barry McInerney, President and Chief Executive Officer, Mackenzie Investments

We at Mackenzie are 100% committed to the ETF business. This is an exciting business for us. The 10 ETFs we have launched to date and more to come, we believe are all highly differentiated and very innovative and improve the overall risk adjusted return for portfolio and ultimately, improve the retirement journey for all Canadians.