Mackenzie Investment Grade Floating Rate Fund | Mackenzie Investments

Mackenzie Investment Grade Floating Rate Fund

Mackenzie Investment Grade Floating Rate Fund

Steve Locke, Mackenzie Fixed Income Team Lead, discusses the features of Mackenzie Investment Grade Floating Rate Fund and his team’s approach to managing the fund.

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STEVE LOCKE: The Mackenzie Investment Grade Floating Rate Fund is one of the newest funds we've launched here at Mackenzie. And as the title suggests, it's focused on floating rate coupons or floating rate sources of income, in terms of the assets we're investing in.

It's also a high quality funds, as the investment grade title suggests, which means that for this fund we're actually going to maintain a single A low or higher average credit rating in the fund overall. So a very high quality fund that's delivering floating rate of interest base coupon to Canadian investors. And that's important as we look ahead to perhaps a rising yield curve and rising policy rate environment. The floating coupon nature of the instruments in this fund will help protect capital during a rising yield environment. And that's going to help diversify client portfolios, which up until now had their fixed income investments focused on fixed coupon bonds.

Our team at Mackenzie is uniquely structured to help provide this type of solution to clients. The reason for that is that we have a broad range of investment styles that we manage, and we can be very active in selecting the best floating rate instruments to go into this fund, including things like floating rate loans which,' although they're below investment grade quality, to a small degree in this fund, they're going to help boost the yield and add to the diversity of the overall experience that we deliver to clients.

So a very good fund for today, good for diversifying client portfolios and adding a flexible yield structure, a floating yield structure, to the overall client income stream.