Ivy Through the Cycles | Mackenzie Investments

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 1

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% 9.7%
MSCI World TR Index (net C$) 1% 0.2% 12.5%

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 1

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 December 31, 2017

In Cycle 4, from the market peak in February 20, 2007 to December 31, 2017, Mackenzie Ivy Foreign Equity Fund once again outperformed the Index with considerably less volatility. In this case, 23% less than the Index.

Line graph of Ivy performance since inception

Source: Morningstar Direct, February 20, 2007 to December 31, 2017

  Returns Standard Deviation
  Cumulative Annualized Annualized
Mackenzie Ivy Foreign Equity Fund – Series F 99% 7.0% 9.0%
MSCI World TR Index (net C$) 71% 5.4% 11.6%

Putting it all together: performance since inception

Full Period: October 16, 1992, to December 31, 2017

Putting it all together, since Mackenzie Ivy Foreign Equity Fund's inception on October 16, 1992, through to December 31, 2017, the Fund is up 683.8% versus 557% for the Index. What's more, the Fund achieved this outperformance while taking on significantly less risk as measured by standard deviation: 9.0% for the Fund versus 12% for the Index, or 25% less risk.

Line graph of Ivy performance since inception

Source: Morningstar Direct, October 16, 1992, to December 31, 2017.
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 March 31, 2017

Fund and Benchmark Performance December 31, 2017 1
year
3
year
5
year
10
year
15
year
20
year
Since
Inception1
Mackenzie Ivy Foreign Equity Fund – Series F 2.9% 6.9% 12.1% 7.8% 6.5% 7.0% 8.5%
MSCI World TR Index (net C$) 14.4% 12.2% 16.9% 7.6% 7.2% 5.3% 7.8%
Morningstar Quartile ranking2 4 4 3 1 2 1 1

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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 December 31, 2017. 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 – 1,525 funds; three years – 1,034 funds; five years – 748 funds; ten years – 363 funds; fifteen years – 161 funds. Mackenzie Ivy Foreign Equity Fund Source: Morningstar Direct, October 16, 1992 to December 31, 2017.

1Source: Morningstar Direct.

2Source: Morningstar Direct. Standard deviation is a measure of historical risk; future risk may be different.

Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns as of December 31, 2017 including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution, or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. This document includes forward-looking information that is based on forecasts of future events as of December 31, 2017. We will not necessarily update the information to reflect changes after that date. Risks and uncertainties often cause actual results to differ materially from forward-looking information or expectations. Some of these risks are changes to or volatility in the economy, politics, securities markets, interest rates, currency exchange rates, business competition, capital markets, technology, laws, or when catastrophic events occur. Do not place undue reliance on forward-looking information. In addition, any statement about companies is not an endorsement or recommendation to buy or sell any security. Index performance does not include the impact of fees, commissions, and expenses that would be payable by investors in the investment products that seek to track an index. The content of this brochure (including facts, views, opinions, recommendations, descriptions of or references to, products or securities) is not to be used or construed as investment advice, as an offer to sell or the solicitation of an offer to buy, or an endorsement, recommendation or sponsorship of any entity or security cited. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it. The rate of returns and/or mathematical tables shown are used only to illustrate the effects of the compounded growth rate and are not intended to reflect future values the mutual fund or returns on investment in the mutual fund.