| Fund Company | Mackenzie Financial Corporation |
| Fund Type | North American Equity |
| Rating | $$$ |
| Style | Bottom Up Blend |
| Risk Level | Medium High |
| Load Status | Optional |
| RRSP/RRIF Suitability | Good |
| TFSA Suitability | Good |
| Manager | Stephanie Griffiths since January 2000 |
| MER | 2.49% |
| Code | MFC 296 – Front End Units MFC 286 – DSC Units MFC 3181 – Low Load Units |
| Minimum Investment | $500 |
Like other funds in the Ivy family, this north American focused small / mid cap fund is less volatile than other funds in the category. The manager looks to preserve capital and provide the opportunity for capital growth over the long term by investing in North American small and mid cap funds. There are no fixed sector allocations or cash weightings.
Risk management is paramount within the Ivy family, and this fund is no exception. The manager uses a bottom up approach that looks to find stocks that have the ability to deliver above average returns with lower than average risk.
The portfolio is very concentrated holding around 25 individual stocks, with the top 10 making up nearly three quarters of the fund.
At present, the portfolio is heavily overweight in industrials and healthcare. It has virtually no exposure to utilities or energy.
Performance has been decent, posting a five year return of 3.3%, outpacing both the category and the benchmark. Volatility is lower than the BMO Small Cap Index, and also the large cap focused S&P 500.
The MER of the fund is reasonable at 2.49%, which is lower than the category median.
Given the fund’s current positioning, it is our expectation that this fund will do well on a relative basis in the near to medium term. We would expect that this fund will hold up particularly well when markets get bumpy.
It is our opinion that this fund is a good small cap option for investors with a medium or higher risk tolerance. We are confirming the fund’s $$$ rating.