(October 27 – 10:30 ET) – Mackenzie Financial Corp. is launching a tax-efficient program that gives Mackenzie unitholders the freedom to move among thirty-two Mackenzie equity funds without realizing capital gains.

“Our Capital Class funds give Mackenzie investors the freedom to move between funds without triggering taxes,” said Phil Cunningham, president Mackenzie Financial Services Inc. “Investors can now enjoy the compounding benefits of tax deferral, while taking advantage of Mackenzie’s world-class team of portfolio managers.”

Under the program, Mackenzie investors can choose from up to thirty-two “Capital Class” funds, or “switch funds,” that offer the same leading features of the underlying funds, but with the benefits of a tax-efficient structure. These funds include Mackenzie’s leading Canadian, U.S., and international equity funds plus various sector and specialty funds.

Investors seeking a substitute to cash, can now opt for one of two new unique Managed Yield Capital Class Funds – the first of their kind in Canada. The Canadian Managed Yield Capital Class and U.S. Managed Yield Capital Class, hold portfolios of Canadian equities hedged to provide a stable return for investors.

“With Mackenzie’s Managed Yield Capital Class funds, for the first time Canadian investors have a suitable alternative to money market investments and a new place to temporarily park money when markets are rocky,” said Jim Fraser, senior vice president, Mackenzie Financial Services Inc.

Mackenzie says financial planners will be able to use these managed yield products to assist their clients in solving complex tax planning requirements for income splitting and to maximize after-tax returns for investors requiring liquidity and relatively stable returns.

Returns are expected to be superior to T-bill returns, with only a minimum $500 investment to start. The Managed Yield funds pay out their yield in capital gains and will be taxed at the capital gains rate which the Federal Government recently lowered to fifty per cent.

The Managed Yield Capital Class funds offer a 1.25% MER plus operating expenses and are offered in the Canadian and U.S. versions.
-IE Staff