Mackenzie Canadian Growth Fund
June 23, 2017
Investment Director – Equities
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.
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
S&P/TSX Composite Index Total Return
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.