The performance during the quarter is consistent with the Portfolio Managers’ view that the global economic expansion appears to be gaining breadth. This backdrop is supportive of energy prices however precious metals holdings suffered a decline.
Funds managed by the Mackenzie Resource Team benefited from a rerating to energy equities during the quarter, whereas precious metal equities were roughly flat and materials equities were mixed.
Global authorities are unwilling to let populist politics, deflationary forces and low productivity growth affect the fragile path of economic growth. Central Banks in Europe and Japan are intensifying their efforts to reflate their economies with quantitative easing; thus driving down nominal interest rates below zero.