Ivy Through the Cycles

Stock markets move in continuous cycles through bull and bear phases. It's all but impossible to time the markets – exiting at the top and buying again at the bottom. But since its inception in 1992, by not overpaying and holding high-quality, market-dominating companies, Mackenzie Ivy Foreign Equity Fund has outperformed across all complete market cycles.

Click on the market cycles above for details.

Growing across a complete market cycle

Cycle 1: Trough to trough – October 16, 1992 (Inception) to March 12, 2003

When the Bull and Bear phase charts are put together to reflect a full market cycle (Cycle 1), you can see that by not fully participating in the market downturn and aiming to protect capital when it mattered most, Mackenzie Ivy Foreign Equity Fund quickly made up lost ground. In fact, from inception on October 16, 1992, to the market trough in March 12, 2003, the Fund was up a cumulative 155% versus the Index which was up 95%. That equates to an outperformance of 2.8% annualized, generated with 30% less volatility (as measured by standard deviation) than the Index.

Line graph of Ivy performance in Cycle 1

Source: Morningstar Direct, October 16, 1992 to March 12, 2003.
Note: Mackenzie Ivy Foreign Equity series A started in October 1992 and series F began in December 1999; as such, for the time period before December 1999, we are relying on series A returns data to evaluate performance.

  Returns Standard Deviation
  Cumulative Annualized Annualized
Mackenzie Ivy Foreign Equity Fund – Series F 155% 9.4% 9.4%
MSCI World TR Index (net C$) 95% 6.6% 13.4%

Avoiding the tech crash added to gains

Cycle 2: Peak to peak – March 24, 2000 to February 20, 2007

In Cycle 2, from the market peak on March 24, 2000, to the next peak in February 20, 2007, Mackenzie Ivy Foreign Equity Fund gained 62% while the Index was up a mere 1%. The Fund’s downside protection coming out of the TMT bubble in 2000 is largely responsible for the significant outperformance through this cycle producing a 7% annualized return and with 24% less volatility, as measured by standard deviation, than the Index.

Line graph of Ivy performance in Cycle 2

Source: Morningstar Direct, March 24, 2000 to February 20, 2007.

  Returns Standard Deviation
  Cumulative Annualized Annualized
Mackenzie Ivy Foreign Equity Fund – Series F 62% 7.2% 9.4%
MSCI World TR Index (net C$) 1% 0.2% 12.3%

Steady growth and downside protection results in outperformance

Cycle 3: Trough to trough – March 12, 2003 to March 9, 2009

In Cycle 3 from March 12, 2003, to March 9, 2009, Mackenzie Ivy Foreign Equity Fund once again outperformed the Index by nearly 4% annualized, with 23% less volatility. The Fund has tended to lag in a strong bull market up to the peak (while still generating solid returns), but also tended to offer downside protection when markets turned negative.

Line graph of Ivy performance in Cycle 3

Source: Morningstar Direct, March 12, 2003 to March 9, 2009.

  Returns Standard Deviation
  Cumulative Annualized Annualized
Mackenzie Ivy Foreign Equity Fund – Series F 19% 2.9% 9.5%
MSCI World TR Index (net C$) -5% -0.9% 12.3%

Protecting investors in volatile markets

Cycle 4: Peak to current – February 20, 2007 to September 30, 2016

In Cycle 4, from the market peak in February 20, 2007 to September 30, 2016, Mackenzie Ivy Foreign Equity Fund once again outperformed the Index with considerably less volatility. In this case, 24% less than the Index.

Line graph of Ivy performance in Cycle 4

Source: Morningstar Direct, February 20, 2007 to September 30, 2016.

  Returns Standard Deviation
  Cumulative Annualized Annualized
Mackenzie Ivy Foreign Equity Fund – Series F 92% 7.0% 9.1%
MSCI World TR Index (net C$) 55% 4.7% 11.9%

Putting it all together: performance since inception

Full Period: October 16, 1992 to September 30, 2016

Putting it all together, since Mackenzie Ivy Foreign Equity Fund’s inception on October 16, 1992, through to September 30, 2016, the Fund is up 665% versus 453% for the Index. What’s more, the Fund achieved this outperformance while taking on significantly less risk as measured by standard deviation: 9.1% for the Fund versus 12.2% for the Index, or 25% less risk.

Line graph of Ivy performance since inception

Source: Morningstar Direct, October 16, 1992 to September 30, 2016.
Note: Mackenzie Ivy Foreign Equity series A started in October 1992 and series F began in December 1999; as such, for the time period before December 1999, we are relying on series A returns data to evaluate performance. Source: Morningstar Direct, October 16, 1992 to September 30, 2016

Fund and Benchmark Performance
September 30, 2016
1 year 3 years 5 years 10 years 15 years 20 years Since Inception1
Mackenzie Ivy Foreign Equity Fund (F) 7.7% 12.3% 14.2% 8.0% 7.0% 8.5% 8.9%
MSCI World Index (net C$) 9.2% 14.9% 16.9% 6.2% 5.0% 5.7% 7.4%
Morningstar Quartile ranking2 2 2 2 1 1 1 1

Mackenzie Ivy Foreign Equity Fund

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Mackenzie Ivy Canadian Balanced Fund

Mackenzie Ivy European Class

Mackenzie Ivy Global Balanced

Bios and Quarterly Updates

Notes

  1. Mackenzie Ivy Foreign Equity series A started in October 1992 and series F began in December 1999; as such, for the time period before December 1999, we are relying on series A returns data to evaluate performance.
  2. Quartile rankings are from Morningstar Research Inc., an independent research firm, based on the Morningstar Global Equity category, and reflect the performance of the Mackenzie Ivy Foreign Equity Fund Series A for the 1-, 3-, 5-, 10-, 15- and 20-year periods and since inception (October 16, 1992), all as of September 30, 2016. The quartiles divide the data into four equal regions. Expressed in terms of rank (1, 2, 3 or 4), the quartile rankings compare how a fund has performed relative to other funds in a particular category and are subject to change monthly. The number of Global Equity funds for the Mackenzie Ivy Foreign Equity Fund Series F for each period are as follows: one year – 1,264 funds; three years – 924 funds; five years – 683 funds; ten years – 259 funds; fifteen years – 115 funds; twenty years – 41 funds; since inception – 25 funds. Mackenzie Ivy Foreign Equity Fund Source: Morningstar Direct, October 16, 1992 to September 30, 2016.