Fund fee changes, automatic conversions announced

Mackenzie Investments’ planned changes aim for better dealer compensation and investor transparency

Fund fee changes, automatic conversions announced
Investment management firm Mackenzie Investments has announced changes to management fees and dealer compensation on select funds, as well as a plan to start automatically converting back-end purchase issues of certain securities to their front-end equivalents.

"At Mackenzie Investments, we regularly review our product shelf to ensure we are offering competitive, innovative solutions that reflect the world in which we operate and to meet the needs of advisors and their clients," said Barry McInerney, the firm’s president and CEO.

With that in mind, Mackenzie Investments will lower the management fees and reduce the dealer compensation for three Symmetry Portfolios effective Jan. 3. The Symmetry portfolios to be changed are the Symmetry Moderate Growth Portfolio/Class fund, the Symmetry Growth Portfolio/Class fund, and the Symmetry Equity Portfolio Class fund.

The following changes will be made for Series A, AR, T6, T8 units:
Fund Name Current Dealer Compensation New Dealer Compensation Current Management Fee New Management Fee
Symmetry Moderate Growth Portfolio/Class 1.25% 1.00% 2.10% 1.85%
Symmetry Growth Portfolio/Class 1.25% 1.00% 2.25% 2.00%
Symmetry Equity Portfolio Class 1.25% 1.00% 2.25% 2.00%

The dealer compensation for GFO purchase option units of the funds above will decline by 0.19%. Series G and I units will be affected as well, with dealer compensation and management fees also set to decline by 0.25%.

At the same time, certain Low Load 2 funds will be subject to increased dealer compensation on select fixed-income funds, balanced funds, managed asset portfolios, and alternative funds. While dealer compensation for the applicable funds originally ranged from 0.2% to 0.5%, the adjustment will increase them to 0.25% to 1.00%.

Meanwhile, starting on Dec. 30 and recurring every second Friday of the month moving forward, Mackenzie will automatically convert most matured securities to their front-end purchase option equivalents. With the change, investors will have greater transparency regarding their matured securities that are free of redemption fees.

Related stories:
Are Canadians right to be financially pessimistic?
Mackenzie Investments launches new tax-efficient funds