Mackenzie Diversified Alternatives Fund | Mackenzie Investments

Mackenzie Diversified Alternatives Fund

Celebrating 3 Years of Delivering Strong Results!

An alternative solution for enhancing
risk-adjusted returns

The Mackenzie Diversified Alternatives Fund (MDAF) is a one-stop solution that provides exposure to alternative asset classes and is designed to complement a traditional balanced portfolio.

Since its launch about 3 years ago (Oct. 27, 2015), the Fund has delivered on its objective to provide enhanced returns with substantially lower volatility than a balanced portfolio of stocks and bonds.

Matthew Cardillo

Celebrating 3 Years of Performance

Portfolio Manager Matt Cardillo discusses how MDAF has delivered on its objectives, its evolution and what's in the future for the fund.

Access to alternative asset classes to enhance return and reduce risk

Mackenzie Diversified Alternatives Fund has shown it may enhance the return and lower the risk of traditional global balanced portfolios.

The chart below shows how the risk-return profile of a representative traditional global balanced portfolio may be improved by adding a 20% allocation to a liquid alternative solution (e.g., MDAF).

Representative Global Balanced Portfolio With and Without Exposure to MDAF

Scattergraph Click to enlarge

Source: Mackenzie Investments, October 31, 2018

Traditional Global Balanced Portfolio is represented by the Morningstar Global Neutral Balanced category average (60% EQ/40% FI).

The Sharpe Ratio measures risk-adjusted returns. Generally, a higher Sharpe ratio reflects a more attractive risk-adjusted return for an investment.

Since its inception, the Mackenzie Diversified Alternatives Fund produced a Sharpe Ratio of 1.04 compared to a ratio of 0.67 for the Traditional Global Balanced Portfolio represented by the Morningstar Global Neutral Balanced category average.

Sharpe Ratio

Bar graph Click to enlarge

Source: Mackenzie Investments, from October 27, 2015 - October 31, 2018

*Traditional Global Balanced Portfolio is represented by the Morningstar Global Neutral Balanced category average.

Compound Annualized Returns 10/31/2018. 1-Year: -0.6%, 3-Year: 5.1%, Since inception (Oct. 27, 2018): 4.9%

The benefit of a diversified approach to alternative assets

Alternative asset classes can vary greatly in performance from year to year, making it difficult to predict which asset classes will be the best performer.

Using data from 2008 to 2017, the table below illustrates how a diversified approach may be the best way to navigate these asset classes. Since its launch, Mackenzie Diversified Alternatives Fund has provided diversification, which can give investors peace of mind.

Graph Click to enlarge

Source: Mackenzie Investments
Returns are series F, as of December 31, 2017. Live data not available for MDAF prior to 2016.
Data representing a diversified alternative solution prior to 2016 is comprised of equal weightings of the alternative asset classes listed.

Mackenzie Diversified Alternatives Fund provides investors with a diversified portfolio of alternative asset classes, and benefits from portfolio manager oversight.

Fund Asset Allocation

graph Click to enlarge

Source: Mackenzie Investments, as of October 31, 2018.

For more information, please contact your advisor.

Additional Resources

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 November 30, 2016 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.

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.