| Fund Company | Mackenzie Investments |
| Fund Type | Canadian Neutral Balanced |
| Rating | B |
| Style | Growth |
| Risk Level | Medium |
| Load Status | Optional |
| RRSP/RRIF Suitability | Good |
| TFSA Suitability | Good |
| Manager | Dennis Starritt since November 1996
Dina DeGeer since November 1996 Steve Locke since January 2010 |
| MER | 2.51% |
| Code | MFC 724 – Front End Units
MFC 824 – DSC Units |
| Minimum Investment | $500 |
Analysis: This balanced fund is managed almost like a fund of funds, with Dennis Starritt, Dina DeGeer, and David Arpin managing the equity component, while Steve Locke and the Mackenzie Fixed Income Team taking care of the fixed income sleeve. The top level asset mix decision is now in the hands of Mackenzie’s Asset Mix Team, which is headed up by. Alain Bergeron.
The equity sleeve looks almost identical to the Mackenzie Canadian Growth Fund (please see page 6 for a more detailed review). It holds a mix of companies of all sizes, with more than half invested in small and mid-sized names. They also have nearly 40% invested in the U.S. The portfolio looks a lot different than the S&P/TSX Composite Index, with a significant underweight in energy, materials and financials, and a big overweight in technology.
The fixed income portion is overweight in corporate bonds and those rated BBB. It also has some exposure to high yields. In a recent commentary, the manager hinted the that the recent selloff in high yield was overdone, and “…expect the strong fundamentals to continue and the default rate to remain near record lows and also continued volatility through the end of the year, driven by geopolitical uncertainties and fears of rising interest rates that will create tactical opportunities for investors.”
The fund’s asset mix will lean towards equities, which are expected to range between 60% and 90%. At the end of November, it held about a third of the fund in fixed income, 40% in Canadian equities, 20% in U.S. equities and the rest in cash.
Recent performance has been strong, thanks largely to the U.S. equity holdings, and the underweight in energy and materials.
It offers a solid equity component, complimented by a strong fixed income team. The biggest question mark will be how much additional value, if any, having an asset mix manager will add to the fund. While not a bad balanced fund, I do believe that there are other balanced funds that offer a more compelling risk reward profile.