Rethink Fixed Income Investing | Mackenzie Investments

Rethink Fixed Income Investing


Mackenzie's Fixed Income Models

Understanding how to manage duration, credit risk and correlation when allocating fixed-income securities is more important than ever. Rethinking how and why various fixed income assets are combined in a portfolio can help maximize its risk and return characteristics.

It's all about the right combination

Fixed-income investments exist along a spectrum of principal loss and corresponding yields. There are several sub-asset classes that exhibit different volatilities and return patterns, and that therefore play very different roles within the portfolio.

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Mackenzie's Fixed Income Models*

Mackenzie Investments has created three models as examples of how Mackenzie Mutual Funds and/or Mackenzie ETFs could be used within portfolios for different objectives, risk profiles and time horizons. Consider three models that allocate to various fixed income sub-asset classes, based on a desired outcome.

 

Enhanced Yield

Optimised Core Bond

Low Duration

Investor's Objective Designed for investors seeking a higher level of income over a market cycle while attempting to preserve some of the diversification benefits of conventional fixed income portfolios. Designed for investors seeking to largely preserve the role of conventional core fixed-income holdings in terms of lowering correlation to equity holdings while still offering the potential for a moderate level of income. Designed to target a lower level of duration than in conventional core fixed income products for investors whose objectives might include lower levels of volatility or a preference for capital preservation.
Model's Objective Intended to deliver a higher level of income with lower levels of volatility than conventional higher-yielding investments. Intended to approximate the return of the FTSE TMX Canadian Bond Universe Index with a lower level of volatility. Intended to maintain an average portfolio duration below that of the index over a market cycle, differentiating returns in periods of rising rates or market stress.
Allocation Range
 
Sample Allocation

 

A range of possible allocations to various Mackenzie Fixed Income Funds / ETFs are used to build each model:

^ Holdings between mutual funds and ETFs with similar mandates have been, and may continue to be dissimilar. This fact could result in different risk and return profiles over time between a mutual fund and an ETF with a similar mandate.

Portfolio Managers

Steve Locke, MBA, CFA

Senior Vice President, Portfolio Manager, Head of Team

Mackenzie Fixed Income Team

Investment experience since 1995

Konstantin Boehmer, MBA

Vice President, Portfolio Manager

Mackenzie Fixed Income Team

Investment experience since 2003

Felix Wong, MBA, CFA

Vice President, Portfolio Manager

Mackenzie Fixed Income Team

Investment experience since 1988

Dan Cooper, CFA

Vice President, Portfolio Manager

Mackenzie Fixed Income Team

Investment experience since 2003

Movin Mokbel, MBA, CFA

Vice President, Portfolio Manager

Mackenzie Fixed Income Team

Investment experience since 2000

Dustin Reid, MBA

Vice President, Investment Management, Chief Fixed Income Strategist

Mackenzie Fixed Income Team

Investment experience since 1997

Read Mackenzie's Fixed Income Models brochure to learn more or
speak to you Mackenzie Sales Representative.

*The Mackenzie Fixed Income Model Portfolios are made available to investment advisors for illustrative purposes only. These models demonstrate potential ways in which Mackenzie Mutual Funds and/ or Mackenzie ETFs could be used to create investment portfolios for different objectives, risk profiles and time horizons. These models do not constitute investment recommendations or a solicitation to buy or sell Mackenzie Mutual Funds and/or Mackenzie ETFs. The information provided is not investment advice and is not customized to the individual circumstances of any particular investor. These model portfolios may be adjusted from time to time without notice. Mackenzie Investments shall not be liable to any person for the quality, currency or completeness of these model portfolios. Investors cannot invest directly in a Mackenzie Fixed Income Model Portfolios as these models are not offered by Mackenzie Investments as stand-alone investment options. Should an investor choose to adopt an investment approach similar to a model portfolio, it will require multiple trades to purchase the individual mutual fund(s)/ETF(s).

Commissions, management fees, and expenses all may be associated with mutual fund and exchange traded fund investments. Please read the prospectus before investing which contains investment objectives, strategies, risks, fees, expenses, and other important information. Mutual funds and ETFs are not guaranteed, their values change frequently, and past performance may not be repeated.