| Fund Company | Mackenzie Financial Corporation |
| Fund Type | Canadian Dividend and Income Equity |
| Rating | C |
| Style | Value |
| Risk Level | Medium |
| Load Status | Optional |
| RRSP/RRIF Suitability | Fair |
| TFSA Suitability | Fair |
| Manager | Hovig Moushian since December 2013 Darren McKiernan since December 2013 |
| MER | 2.50% |
| Code | MFC 1531 – Front End Units MFC 1630 – DSC Units |
| Minimum Investment | $500 |
Analysis: A few months ago, I highlighted this fund and panned it, with the view that performance would be expected to remain below average. Apparently I’m not the only one with that view, since on December 6, Mackenzie turfed the old management team, and replaced them with Hovig Moushian and Darren McKiernan.
Some of you may know Mr. McKiernan from Invesco Trimark, where he was part of the Global Equity team, and was largely responsible for the recent performance of the Trimark Global Dividend Fund. He left Invesco in September and was announced the new lead of the Mackenzie Global Equity & Income Team.
On this fund, Mr. Moushian will focus on Canadian equity opportunities, while Mr. McKiernan will focus on non-Canadian opportunities.
In general, I view this as a positive move for the fund. While I haven’t had an opportunity to speak with Mr. McKiernan about this yet, I would expect that under his leadership, we will see him implement the same rigorous, bottom up investment process that he used at Invesco, and Burgundy before that.
I expect that we’ll see lower volatility, with an increase in return. There will likely be a good chunk of portfolio turnover, with the result being a more concentrated portfolio, cutting the number of names by about a third. I would also not be surprised to see the cash balance increase, as his Trimark mandates have been carrying cash levels in the mid to high teens of late.
While I’m encouraged by this, I’m still not comfortable recommending the fund. I will want to wait until the portfolio transition has occurred, and the new managers have had a few months to catch their stride. Until then, I believe that there are more attractive global equity mandates available.