| Fund Company | Mackenzie Investments |
| Fund Type | Canadian Focused Equity |
| Rating | A |
| Style | Large Cap Growth |
| Risk Level | Medium |
| Load Status | Optional |
| RRSP/RRIF Suitability | Good |
| TFSA Suitability | Good |
| Manager | Dennis Starritt since August 1995Dina DeGeer since August 1995David Arpin since January 2013 |
| MER | 2.51% |
| Code | MFC 650 – Front End UnitsMFC 640 – DSC Units |
| Minimum Investment | $500 |
Analysis: Year to date, this has been the best performing Canadian equity fund, gaining more than 22%, handily outpacing its peer group and the index. Longer term numbers are also impressive, gaining an annualized 18% for the most recent three year period.
To do this, the team uses a bottom up, fundamentally drive approach that looks for companies with strong management, good growth prospects and a solid financial position. While their process is definitely not a value focused one, they do pay attention to make sure they don’t over pay for expected growth.
They look for companies of any size, and at the end of November, about half the fund was invested and small and mid-cap names. It is a Canadian focused fund, meaning they can invest up to half outside our borders. Currently, about 40% is invested in the U.S., which has definitely helped to boost recent performance, particularly since currency is generally not hedged.
Given their approach, it is not surprising to see a portfolio that looks nothing like its benchmark, significantly underweight energy, materials, and financials. It is overweight in healthcare and technology, which have helped the recent performance.
For their domestic holdings, they have been focusing on names that generate a significant amount of their revenues outside of Canada.
Despite the growth focus, they have done an excellent job in keeping volatility in check. Volatility has remained well below the index and peer group. However, given the growth focus, combined with the concentrated portfolio, there is a risk that volatility may be higher than average in certain periods.
This is a very solid Canadian focused equity fund. It offers a concentrated portfolio that looks dramatically different than the index. Costs are a touch on the high side, with an MER of 2.51%. While I don’t expect the recent performance to be repeatable, I still expect this to remain a very solid fund going forward, delivering decent risk adjusted returns to investors