Mackenzie Minute: September 9, 2016
Michael Cooke, SVP, Head of Exchange Traded Funds, discusses the sluggish global economic recovery and Mackenzie’s new solutions for market uncertainty.
The events of the last two weeks are really a microcosm of what we've seen from the depths of the financial crisis, sort of a sluggish uncertain global economic recovery. Still very, very low interest rates, but a lot of anticipation about how and when the economy will recover and what kind of impact that will have on interest rates.
The last two or three weeks there have been suggestions that the U.S. economy is showing signs of improvement, but the signals continue to be very mixed and it creates a lot of uncertainty and unpredictability for investors in trying to position their fixed income portfolios. Even for the world's largest investors it's a very complex task. Imagine what it must mean to the individual investor, to the financial advisor?
I believe as a result of that backdrop that, you know, the benefits of active management and, in particular, fixed income active management, make a great deal of sense in the current environment. But, that uncertainty and unpredictability also impacts equity markets, another core asset class for most investors.
So, through our partnership with Paris-based asset manager Tobam and their maximum diversification index series, we think we've got a compelling new approach to core equity market investing. And, we've taken that approach alongside our active fixed income capabilities to present the marketplace with 10 Mackenzie exchange traded funds set to list in 2016. Four fixed income, six equity. Helping investors navigate through this uncertain environment, the backdrop of unpredictability and volatility, calls for a different approach to how you build a portfolio. And, we believe we've brought solutions that address that uncertainty and are compelling, valuable components of client portfolios in the current environment.