Mackenzie offers tax-managed access to the world with new fund

Canada-first global equity fund aims to provide long-term, tax-effective rates of return

Mackenzie offers tax-managed access to the world with new fund

Canadian investors looking for more global equity exposure while minimizing the sting of taxes will likely appreciate Mackenzie Investments’ newest mutual fund.

The first of its kind in Canada, the Mackenzie Tax-Managed Global Equity Fund aims to deliver long-term tax-effective rates of return. Open exclusively to non-registered investors, the strategy invests primarily in equity securities issued by companies of any size, located anywhere in the world.

“By incorporating tax management strategies into the investment process, Mackenzie Tax-Managed Global Equity Fund aims to help investors keep more of their money compounding in the markets and minimize the tax drag on their investment performance,” said Kristi Ashcroft, head of Product, Mackenzie Investments.

The fund will be managed by the Mackenzie Global Equity and Income Team, and co-led by portfolio managers Ome Saidi and Katherine Owen. The portfolio will be diversified across high-quality global businesses that sit at or near the top of the value chain within their respective industries. The team will remain style-agnostic across the value-growth spectrum.

To reduce tax drag on investment returns, the team will employ strategies that include:

  • Giving preference to companies with lower relative yield weighed against risk-adjusted return potential;
  • Generally favouring longer-term investment opportunities; and
  • Actively managing the portfolio to minimize distributions, including using tax-loss harvesting.

“Canada's relatively high marginal income tax rate and continuous growth in taxable financial wealth has resulted in a significant need for a tax-efficient mutual fund,” Ashcroft said. “We're thrilled to be able to offer this first-of-its-kind global equity fund in Canada to investors.”


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