Canada-based Mackenzie Financial Corporation (Mackenzie Investments) has entered the exchange-traded fund space with the launch of four active fixed income ETFs on the Toronto Stock Exchange today.
MacKenzie Investments moves into ETF space with fixed income active ETF launch
The ETFs are launched in a bid to help investors build their portfolios and are; the Mackenzie Core Plus Global Fixed Income ETF (TSX:MGB), the Mackenzie Unconstrained Bond ETF (TSX:MUB), the Mackenzie Floating Rate Income ETF (TSX:MFT) and the Mackenzie Core Plus Canadian Fixed Income ETF (TSX:MKB).
While each ETF uses a different approach to generate stable risk-adjusted returns for investors in the fixed income markets, the layer of active management means investors benefit from the fund management expertise at Mackenzie Investments.
“Our active ETFs extend our commitment to bring the best offerings to advisors and help them meet investors’ needs,” said Jeff Carney, President and Chief Executive Officer of Mackenzie Investments. “These ETFs provide the innovation you would expect from Mackenzie Investments in a product that delivers our asset management expertise to a broader audience.”
Michael Cooke, Senior Vice President and Head of Exchange Traded Funds at Mackenzie Investments, added: “By launching the Mackenzie ETFs, we are delivering solutions to investors and advisors that offer the benefits of portfolio manager expertise plus structural benefits not available in other investment vehicles.”
The suite of ETFs will be managed by the Mackenzie Fixed Income Team, led by Steve Locke, Senior Vice President and Portfolio Manager. Launched today, Mackenzie Investments has closed the initial offering with the designated broker of the ETFs.
The ETFs are as follows:
Mackenzie Core Plus Global Fixed Income ETF (TSX:MGB) seeks to generate income, with an emphasis on capital preservation, by investing primarily in investment-grade fixed income securities denominated in Canadian or foreign currencies that are issued by companies or governments. It has a management fee of 0.60%.
Mackenzie Unconstrained Bond ETF (TSX:MUB) seeks to provide a positive total return over a market cycle, regardless of market conditions, by investing primarily in fixed income securities of issuers anywhere in the world and in derivative instruments. It has a management fee of 0.55%.
Mackenzie Floating Rate Income ETF (TSX:MFT) seeks to generate current income by investing primarily in floating rate debt instruments and/or high yield debt securities of issuers located anywhere in the world. It has a management fee of 0.65%.
Mackenzie Core Plus Canadian Fixed Income ETF (TSX:MKB) seeks to provide a steady flow of income by investing primarily in investment-grade Canadian government and corporate fixed income instruments and asset-backed securities with maturities of more than one year. It has a management fee of 0.55%.