Mackenzie Changes Two Portfolios

By Andrew Rickard | September 09 2015 10:38AM

Mackenzie Investments has announced changes to both its Monthly Income Balanced Portfolio and its Monthly Income Conservative Portfolio.

The investment manager notes that, in the past, the portfolios made variable monthly distribution of net income. Starting on or about Oct. 31, the two portfolios will pay a fixed monthly distribution that is equal to 4% of their annual net asset value. “This will allow the Portfolios to generate more predictable cash flow to these series' investors,” explains Mackenzie. “The fixed monthly distributions will consist of net income to the extent applicable. Any amounts in excess will consist of return of capital.”

In addition, at some time later this month, the portfolios will increase their equity weightings in order to deliver more income by way of dividend yields and capital gains. The Mackenzie Monthly Income Balanced Portfolio will shift from about 40% equities and 60% fixed-income investments to approximately 60% equities and about 40% fixed- income, while the Mackenzie Monthly Income Conservative Portfolio will shift from about 20% equities and 80% fixed-income investments to about 40% equities and about 60% fixed-income.

“The Portfolios will continue to generate regular, attractive income streams, provide the opportunity for capital growth through diversified global exposure, and offer explicit downside protection against the risk of catastrophic capital loss,” says Mackenzie. “The focus on mitigating downside risk is achieved through the use of proprietary derivative strategies. As a result, these portfolios aim to deliver significantly less volatility than a similar but unprotected strategy.”

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