Toronto-based Mackenzie Financial Corp. announced on Friday changes to the asset allocation and payout formula of the Mackenzie Monthly Income Balanced Portfolio and Mackenzie Monthly Income Conservative Portfolio.
Between mid- and late September, asset allocations in both funds will change, the firm says, with equity weightings rising in an effort to deliver more income by way of dividend yield and capital gain.
Mackenzie’s Monthly Income Balanced Portfolio will shift to approximately 60% equities and 40% fixed-income, from the current allocation of about 40% equities and 60% fixed-income.
The Monthly Income Conservative Portfolio will consist of approximately 40% equities and 60% fixed-income. The fund is currently at about 20% equities and 80% fixed-income.
As well, each series of both portfolios will pay a fixed annual distribution of 4% of the portfolio’s annual net asset value on a monthly basis, which will be effective on or about Oct. 31. The fixed monthly distributions will consist of net income to the extent applicable and any amounts in excess will consist of return of capital.
“[The change] will allow the portfolios to generate more predictable cash flow to these series’ investors,” the firm’s announcement states.
Historically, the portfolios provided a variable monthly distribution of net income.