Fund Insights: Earn More by Losing Less | Mackenzie Investments

Fund Insights

Mackenzie Canadian Growth Fund


Earn More by Losing Less

Returns and losses are asymmetric. When your investment declines, a bigger drop means your money has to work harder to recover.

Initial Investment

Initial Investment

For illustrative purposes only.

The technology collapse, global financial crisis, and commodity slump are reminders that strong investment processes provide you upside performance, but also protect you through the downturns. Minimizing the downside means your investment recovers faster and can contribute to long-term, positive returns.

Technology Collapse Aug. 2000 – Sept. 2002

  Loss Gain Required to Break Even
  Mackenzie Canadian Growth F
11.7% 13.2%
  S&P/TSX Composite Index Total Return
43.2% 76.1%

Source: Morningstar Direct, August 31, 2000 – September 30, 2002. For illustrative purposes only.

Mackenzie Canadian Growth Fund – Managing Risk in Downside Events

The Mackenzie Canadian Growth Fund substantially limited losses in the three worst downside events in 20 years relative to the S&P/TSX Composite TR.

Technology Collapse (Aug. 2000 – Sept. 2002)

Global Financial Crisis (May 2008 – Feb. 2009)

Commodity Slump (Aug. 2014 – Jan. 2016)

  •   S&P/TSX Index
  •   Mackenzie Bluewater
  •   Relative Performance

Source: Morningstar. Mackenzie Bluewater – Series A, net of fees. Index is S&P/TSX Composite Index – Total Return. Technology collapse dates: Aug. 31, 2000 – Sep. 30, 2002. Global Financial Crisis: May 31, 2008 – Feb. 28, 2009. Commodity Slump: Aug. 31, 2014 – Jan. 31, 2016. For illustrative purposes only.

The team accomplished this by:

  • Being consistently disciplined and valuation sensitive - during the technology bubble the Fund was materially underweight technology stocks because the high valuations didn't make sense.
  • Applying economics to identify major structural issues – whether geography or sector oriented, they avoid these areas and deploy capital to other opportunities.
  • Not timing the market – in each period preceding the major downturns, the Fund underperformed until valuation and economic models were proven accurate; ultimately steering investors away from the risks and earning more by losing less.

Mackenzie Canadian Growth Fund’s focus on high quality, conservative growth businesses from across North America delivers long-term success by managing risk through all markets. Owning leading businesses that generate free cash flow is core to the team’s investment philosophy. Companies that sustainably generate free cash flow have stronger balance sheets and are able to withstand economic downturns.

For more information, please contact your financial advisor.

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 including changes in unit value and reinvestment of all distributions and does 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.

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 document (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.