Mackenzie Financial Corp. (Mackenzie Investments) is proposing to merge three of its fixed income corporate class funds into comparable trust funds, subject to investor approval.
|
Existing Corporate Class Fund |
To be merged into: |
Date of proposed merger |
|
Fixed Income Class* |
Fixed Income Fund (Portico) |
January 2015 |
|
Mackenzie North American Corporate Bond Class |
Mackenzie North American Corporate Bond Fund |
June 2015 |
|
Symmetry Fixed Income Portfolio Class |
Symmetry Fixed Income Portfolio |
October 2015 |
|
*Fixed Income Class and Fixed Income Fund (Portico) are part of the Quadrus Group of Funds. |
These proposed mergers are in response to changes to Canadian tax laws announced in the 2013 federal budget. Each terminating fund is a fixed-income fund that relies on character conversion transactions to provide tax-efficient returns to investors. The dates of the proposed mergers generally correspond with the dates when the funds’ character conversion transactions expire.
Each merger will be a taxable event for investors who hold shares of the terminating fund outside of registered accounts (such as RRSPs). For this reason, Mackenzie Investments is proposing the mergers well in advance of the merger dates, to provide clients as much lead time as possible for their financial and tax planning.
“To defer the tax liability, investors may want to consider switching to different corporate class funds prior to the merger date,” said Carol Bezaire, senior vice president, Mackenzie Tax and Estate Planning. “All switches within Capitalcorp, and all switches within Quadruscorp, will be tax-deferred.”
Investors in Fixed Income Class will enjoy lower fees as a consequence of the merger into Fixed Income Fund (Portico).
Special meetings of each fund’s investors are scheduled for December 8, to consider and vote on the proposed mergers.