Mackenzie Financial Corporation and MAXXUM Financial Services Co. today announced portfolio management changes that affect MAXXUM Canadian Balanced Fund, the MAXXUM Canadian Equity Growth Fund, the MAXXUM Dividend Fund, the MAXXUM Income Fund, the MAXXUM Money Market Fund, the MAXXUM Natural Resource Fund and the MAXXUM Precious Metals Fund .

Effective immediately, the investment management team at Mackenzie Financial will be appointed as sub-advisor to the Funds providing investment advisory and portfolio management services. Effective October 6, 2001, Mackenzie will become the manager of the Funds. Sixty days notice will be provided to unitholders in respect of the change of management of the Funds.

The changes follow an integration plan, also announced today by Mackenzie Financial and MAXXUM Financial Services Co., that will bring the majority of MAXXUM’s Toronto-based employees, its seven Canadian mutual funds and its client service operations under the Mackenzie umbrella.

All of MAXXUM’s corporate functions in Toronto, its wholesaling operations across Canada and support services provided by Investors Group in Winnipeg are being amalgamated with Mackenzie’s existing team to strengthen Mackenzie’s relationship with the independent channel. The MAXXUM brand will also draw on the product innovation expertise of the Mackenzie marketing team.

MAXXUM’s investment management operation will be brought into Mackenzie’s investment management operation in Toronto. MAXXUM’s seven Canadian mutual funds will continue to be offered under the MAXXUM name and under the funds’ existing mandates. As a result of these changes, MAXXUM investment managers Martin Antsee, Gerry Boychuk, Doug Crawford and Jackee Pratt, and Mackenzie manager Ian Osler will be leaving the companies to pursue other opportunities.

With the integration of Mackenzie and MAXXUM now underway, John Wood, the president and CEO of MAXXUM Financial Services Co. will be stepping down effective August 1, 2001.

In total, 128 positions will be affected at MAXXUM and Investors Group. Forty sales and marketing positions have been transferred to Mackenzie, and 88 positions have been eliminated. Of the employees whose positions have been eliminated, 45 will receive offers of re-employment from either Mackenzie or
Investors Group. Both companies intend to re-employ as many of the remaining employees as possible.

“The vast majority of employees affected will receive job offers, and we are pleased to be able to maintain continuity by inviting so many of these talented individuals to stay on with our respective companies,” says Jim Hunter, president and CEO of Mackenzie Financial Corporation. Hunter. “At the same time, we recognize the dedication of all of the employees who contributed to the success of MAXXUM, and we will continue our efforts to re-employ many of them in the near term.”

The seven MAXXUM funds will be managed by Mackenzie’s industry-leading investment managers and will continue to be offered under the MAXXUM name and under the funds’ existing mandates. The Mackenzie managers and their respective MAXXUM fund assignments include:

– Fred Sturm for the MAXXUM Natural Resource Fund and the MAXXUM Precious Metals Fund

– Bill Procter for the MAXXUM Dividend Fund

– Chuck Roth for the MAXXUM Canadian Equity Growth Fund, and the equity portion of the MAXXUM Canadian Balanced Fund

– Tim Gleeson and Chris Kresic for the fixed income portion of the MAXXUM Canadian Balanced Fund, the MAXXUM Income Fund, and the MAXXUM Money Market Fund.

By bringing the funds under Mackenzie’s management, unitholders served through an independent advisor or full-service broker will also benefit from the ability to move between MAXXUM and Mackenzie fund families without incurring additional costs. This feature is expected to be in place by later this Fall.