Fixed Rate Distribution Series Changes1
In an effort to provide consistency within our fixed rate distribution series offering, Mackenzie made enhancements to our series T offering by providing only two options: 5% and 8%. As a result, we:
- Launched 5% and 8% consistently across a number of funds with series T on October 24, 2018. Click here for more information of fund codes.
- Will rename all series T62 to T51 and reduce the distribution rate from 6% to 5%, effective January 2, 2019.
- Will lower the distribution rate on Mackenzie Strategic Income Fund from 6% to 5% to align with other balanced income funds, effective January 2, 2019.
Mackenzie will contact advisors directly by mail who are impacted by the last two items relating to lowering of distribution rates. Advisors with clients that receive cash distributions will receive a letter and impacted client report. The advisor mailing will go out November 5, 2018.
Funds added to One-Step DCA
We expanded the lineup of our One-Step Dollar Cost Averaging (DCA) to include more funds as of October 24, 2018.
- Mackenzie Conservative Income ETF Portfolio
- Mackenzie Conservative ETF Portfolio
- Mackenzie Balanced ETF Portfolio
- Mackenzie Moderate Growth ETF Portfolio
- Mackenzie Growth ETF Portfolio
- Mackenzie High Diversification Emerging Markets Equity Fund
- Mackenzie High Diversification Global Equity Fund
- Mackenzie High Diversification International Equity Fund
- Mackenzie High Diversification European Equity Fund
- Mackenzie High Diversification Canadian Equity Class
- Mackenzie High Diversification US Equity Fund
Effective January 15th twelve new Mackenzie mandates will be launched as One-Step DCA target funds:
- Mackenzie Ivy Canadian Balanced Fund/Class
- Mackenzie Monthly Income Balanced Portfolio
- Mackenzie Monthly Income Conservative Portfolio
- Mackenzie Ivy Canadian Fund
- Mackenzie Unconstrained Fixed Income Fund
- Mackenzie Global Tactical Investment Grade Bond Fund
- Mackenzie Global Equity Fund
- Mackenzie Ivy International Fund/Class
- Mackenzie Cundill US Class
- Symmetry Equity Portfolio Class
Systematic DSC to Fee-for-service Series Switching:
Mackenzie is making it easier for you to transition to fee-based series. Currently, as back-end units in bundled series mature, they are rolled over to front-end units of the same series or to the equivalent Preferred Pricing Series (i.e. Series PW) if the investor qualifies for preferred pricing, through our Matured units auto-conversion or Preferred Pricing Service, respectively.
As of January 15, 2019, we will be introducing an option for the two services that automatically rolls over matured back-end units to a fee-based series of the investor’s choice, on the second Friday of every month, alleviating extra administrative burden and excessive transactions. Authorization instruction is required to initiate this service by filling out this form.
Guided Portfolio Service (GPS) for RESPs
Mackenzie is enhancing the client experience by making Guided Portfolio Service (GPS) available for RESP accounts. As of October 26, 2018, RESPs will be eligible for our Guided Portfolio Service (GPS). GPS is a portfolio rebalancing service that allows investors to create customized investment portfolios. The fund allocations will be automatically rebalanced based on clients’ individual preference as outlined in the Mackenzie (Login Required)GPS Client Agreement Form.
Currently RESP investors who wish to take advantage of portfolio rebalancing use the Symmetry Portfolio Service, which was discontinued in October 2015 for account types other than RESP.
Preferred Pricing Service (PPS) Enhancements
Changes to the Preferred Pricing Service (PPS) automation
To complete the program’s automation, if an investor no longer meets the Eligibility Criteria for Private Wealth Series, we may automatically switch the units back into the appropriate Retail Series, which will have higher management and administration fees than the Private Wealth Series. Such switches will occur on or about the second Friday of every month.
Unless the investor’s high-water mark3 falls below $75,000, we do not automatically switch the units back to the applicable Retail Series. This automation, effective January 2, 2019, ensures households who no longer qualify for preferred pricing fairly pay the same fees as those that have yet to qualify.
- Investors can move back to Private Wealth Series by topping up their investment to meet the $100,000 minimum anytime to once again lower their cost of investing and take advantage of Mackenzie’s Private Wealth Solutions’ many benefits.
- Mackenzie will contact advisors who are impacted by mail. Advisors with clients whose assets with Mackenzie have fallen below the qualification level ($100,000) for preferred pricing will receive a letter and impacted client report. The advisor mailing will go out November 19, 2018.
Preferred Pricing Service (PPS) for RDSP
In keeping with our commitment to improving client experience, we are introducing Preferred Pricing Service on RDSP accounts. Beginning April 1, 2019, and the second Friday of every month thereafter, qualified households – households with a minimum of $100,000 with Mackenzie – will be automatically switched into Series PWR.
Mackenzie will contact advisors directly by mail who are impacted by these. Advisors with clients who have over $100,000 in assets in their RDSP will receive a letter and impacted client report. The advisor mailing will go out in February 2019.
For more information on any of these changes and how they impact your clients, please contact your Mackenzie Sales Representative or the Marketing Services Team at 1-800-387-0780.
1 Includes all permutations PWT5, F5, O5, J5, S5, FB5, PWFB5, PWX5
2 Includes all permutations F6, O6, J6, S6. PWT6, FB6, PWFB6, PWX6
3 The high-water mark is how Mackenzie determines eligibility for preferred pricing. It is the highest peak in value that a fund or account has reached since the preferred pricing implementation date (April 2017).
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.