A Track Record of Consistency | Mackenzie Investments

Fund Insight: A Track Record of Consistency


Key Takeaways

  • The consistency of returns over time is key to the stability of an investor’s capital growth.
  • Mackenzie Ivy Foreign Equity Fund has produced higher average returns over every horizon than its peers in the Morningstar Global Equity Category and the benchmark MSCI World Index, with a narrower range of outcomes at the same time.
  • The Fund has generated consistently lower standard deviation than peers in the Morningstar Global Equity Category and the benchmark over those same horizons.

The consistency of risk and return over time is critical to investors achieving their financial goals. Returns are more consistent for equity investors over longer periods, and investors looking for equity growth and more consistent outcomes may find Mackenzie Ivy Foreign Equity Fund (IFE in charts) an attractive source of consistent returns. The Fund has produced higher average returns over every horizon than our peers in the Morningstar Global Equity Category (Category in charts) and the benchmark MSCI World Index (BM in charts), with a narrower range of outcomes at the same time. In other words, the Fund has been more consistent.

Rolling Periodic Returns Range

Source: Morningstar, March 31, 2018 (based on 294 1-year rolling periods, 270 3-year rolling periods, 246 5-year rolling periods, 186 10-year rolling periods, and 66 20-year rolling periods since October 1992).

From a risk perspective, the Fund has generated consistently lower standard deviation than the Category and the benchmark over those same horizons, again with a more consistent risk experience (i.e. a narrower range of risk outcomes). It is this consistency over time that investors have come to expect of the Mackenzie Ivy Foreign Equity Fund. This expectation reinforces our conviction to stay the course and continue investing as we have since Ivy’s inception over 25 years ago.

Rolling Periodic Risk1 Range

Source: Morningstar, March 31, 2018 (based on 294 1-year rolling periods, 270 3-year rolling periods, 246 5-year rolling periods, 186 10-year rolling periods, and 66 20-year rolling periods since October 1992).

Investors often seek the returns and risks that most closely match their growth needs and risk tolerance to meet their long term financial goals. Equally important is the consistency of those returns at the desired level of risk. An investment that has returns or risk which are not consistent through time can be prone to surprises, and compromise the capital base should the investment do poorly in down markets. This is an issue for all investors, but particularly problematic for investors who are currently, or close to, taking income from their investments to enjoy the fruits of their labour.

The consistency of returns is key to the stability of an investor’s capital growth over time. Mackenzie Ivy Foreign Equity Fund has provided investors a consistent investment experience over many market cycles, and we believe our philosophy and process will allow us to continue to do that over the long run.

Source: Morningstar, October 16, 1992 – March 31, 2018
As of March 31, 2018 1 Year 3 Years 5 Years 10 Years
Mackenzie Ivy Foreign Equity Fund - F -0.6% 3.7% 10.1% 7.8%
MSCI World 9.8% 8.6% 15.1% 8.3%
Morningstar Global Equity Category* 8.9% 6.6% 11.6% 6.7%

*Quartile/Percentile 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 F for the [1-, 3-, 5- and 10-year] periods as of March 31, 2018. 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 category funds for the Mackenzie Ivy Foreign Equity Fund, series F for each period are as follows: one year – 1,563 funds; three years – 1,059 funds; five years – 754 funds; 10 years – 404 funds.

Talk to your financial advisor to learn more about the consistency of the Mackenzie Ivy Foreign Equity Fund.

1 Standard Deviation

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 March 31, 2018 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.

This document includes forward-looking information that is based on forecasts of future events as of March 31, 2018. 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. 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.

Standard deviation is a measure of historical risk; future risk may be different.

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 rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund.