Mackenzie Investments proposes changes to Mackenzie Corporate Class fixed income funds
TORONTO – September 29, 2014 – Mackenzie Financial Corporation (Mackenzie Investments) is proposing to merge three of its fixed income corporate class funds into comparable trust funds, subject to investor approval.
Existing Corporate Class Fund
To be merged into:
Date of proposed merger
|Fixed Income Class*||Fixed Income Fund (Portico)||January 2015|
|Mackenzie North American Corporate Bond Class||Mackenzie North American Corporate Bond Fund||June 2015|
|Symmetry Fixed Income Portfolio Class||Symmetry Fixed Income Portfolio||October 2015|
*Fixed Income Class and Fixed Income Fund (Portico) are part of the Quadrus Group of Funds.
These proposed mergers are in response to changes to Canadian tax laws announced in the 2013 Federal Budget. Each terminating fund is a fixed-income fund that relies on character conversion transactions to provide tax-efficient returns to investors. The dates of the proposed mergers generally correspond with the dates when the Funds’ character conversion transactions expire.
Each merger will be a taxable event for investors who hold shares of the terminating Fund outside of registered accounts (such as RRSPs). For this reason, Mackenzie Investments is proposing the mergers well in advance of the merger dates, to provide clients as much lead time as possible for their financial and tax planning.
“To defer the tax liability, investors may want to consider switching to different corporate class funds prior to the merger date,” said Carol Bezaire, Senior Vice President, Mackenzie Tax and Estate Planning. “All switches within Capitalcorp, and all switches within Quadruscorp, will be tax-deferred.”
Investors in Fixed Income Class will enjoy lower fees as a consequence of the merger into Fixed Income Fund (Portico).
Special meetings of each Fund’s investors are scheduled for December 8, 2014 to consider and vote on the proposed mergers. Investors who hold securities of the Funds as of October 31, 2014 will be entitled to vote at the meetings.
Mackenzie Investments was founded in 1967, and is a leading investment management firm providing investment advisory and related services. With $72.2 billion in assets under management as at August 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 $144 billion in total assets under management as at August 31, 2014. For more information, visit mackenzieinvestments.com.
Quadrus Investment Services Ltd. (“Quadrus”) is one of the largest mutual fund dealers in Canada. Quadrus is a member of the Great-West Lifeco Inc. group of companies, which includes The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company. The Quadrus Group of Funds are distributed exclusively through Quadrus Investment Services Ltd.
For more information contact:
Vice President, Corporate Communications
Marlene Klassen, APR
Assistant Vice President, Communication Services
Quadrus Investment Services Ltd.