Mackenzie ETF Portfolios · PDF fileconstruction rules. ... active, strategic beta and traditional index in one portfolio. ... approach to portfolio asset management

Mackenzie ETF PortfoliosA full spectrum of ETFs. In a single solution.

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Mackenzie ETF PortfoliosInnovative solutions that blend Mackenzie’s Exchange Traded Funds (ETFs)

in a mutual fund.

Discover multi-asset investing using active, strategic beta and traditional

index ETFs in a unified investment experience with Mackenzie ETF Portfolios.

> Mackenzie Conservative Income ETF Portfolio

> Mackenzie Conservative ETF Portfolio

> Mackenzie Balanced ETF Portfolio

> Mackenzie Moderate Growth ETF Portfolio

> Mackenzie Growth ETF Portfolio

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1 Investor Economics, January 2017 (Canadian dollars)

Have you included ETFs in your investment portfolio?

An ETF is a pooled investment vehicle that can be bought and sold on stock exchanges, much like individual stocks. Investors can buy and sell units of the ETF, which represents a fractional ownership of a portfolio of investments.

The convenience and low cost associated of ETFs have led to their popularity with financial advisors and investors. Assets with Canadian-listed ETFs have increased from $15.22 billion in 2006 to more than $140 billion in 2017.1

As the demand for ETFs has grown, so has the diversity of offerings. There are three types of ETFs: active, strategic beta and traditional index ETFs.

The importance of asset allocation

Successful investing requires time, discipline, expertise, technical knowledge, risk management and periodic rebalancing.

And in a time with so much market uncertainty, determining the right assets with the right asset allocation for your portfolio has never been more important. A multi-asset, managed solution can aim for a strategic mix of equity and fixed income holdings.

Active ETFs are actively managed by an investment team that conducts research, makes buy/sell decisions and oversees the underlying portfolio. By actively managing risk factors, they attempt to deliver strong risk-adjusted returns.

Strategic Beta ETFs use alternative index construction rules. This strategy seeks to add exposure to particular investment factors (such as size, value or volatility) or capture perceived over or undervalued market segments. These are also known as smart beta ETFs.

Traditional Index ETFs track well-known market indexes, like the S&P 500. The ETF is structured to mirror the security weights of a specific index and provide broad market exposure. These are also known as passive ETFs.

An innovative mutual fund solution leveraging ETFsConsider a mutual fund that provides unified access to a full spectrum of ETFs – active, strategic beta and traditional index in one portfolio. This one-ticket solution is constructed and managed by a skilled and well-established investment team that takes the complexity out of investing.

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Introducing Mackenzie ETF Portfolios

Experience ETF investing with five Mackenzie ETF Portfolios, comprised of Mackenzie’s active, strategic beta and traditional index ETFs in a well-diversified portfolio. The Portfolios are managed investment solutions that offer a combination of benefits for investors.

The Best of Both Worlds

Mackenzie ETF Portfolios combine the cost-efficiency of ETFs with the accessible structure of mutual funds. This allows you to have greater exposure to ETFs with the benefits of mutual funds in one simple solution.

Multi-level Diversification

There are many decisions when constructing a well-diversified portfolio. One of the many challenges is finding the optimal asset mix. Mackenzie ETF Portfolios offer multi-level diversification, from asset classes to investment approaches to geography, which can help provide a smoother investment ride.

Risk-based Asset Allocation

The Mackenzie Asset Allocation team brings sophisticated expertise to overseeing the Portfolios and applies a robust process for managing risk for different investor risk appetites. Our professional managers apply strategic and tactical asset allocation across the underlying ETFs, and actively manage currency exposure.

Target Asset Allocation Decisions

Strategic Asset Allocation

Attempting to build the best performing

portfolio without taking undue risks

Tactical Asset Allocation

Portfolio allocation is adjusted regularly to take advantage

of market conditions and better manage

risk

Currency Management

Managing currency

exposures

Mutual Funds ETFsETF

Portfolio

Multi-level Diversifier

Geography

Asset Classes Investment Approaches

• Active • Strategic Beta

• Passive

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Making it Easier with Mackenzie ETF Portfolios

The ETF Portfolios offer easy and flexible options:

• Affordable Investments: $500 minimum initial investment; $100 subsequent investment.

• Automatic Investing: Schedule a regular, automatic transfer into your registered or unregistered investment plan.

• Monthly Distributions: Choose from customized or fixed monthly cash flow options based on your own needs.

• Monitoring and Rebalancing: Ongoing oversight and periodic asset class rebalancing is done for you to take advantage of market opportunities and manage risk.

Five Target Portfolios Tailored to Your Risk Tolerance

You can select from five target profiles designed to maximize return potential while controlling for risk.

Inve

stm

ent

Obj

ectiv

e

Seeks to provide investors with a diversified portfolio

designed to provide a steady stream of income with some emphasis on

capital preservation.

Seeks to provide investors with a diversified portfolio

designed to provide a steady stream of income

and some long-term capital appreciation.

Seeks to provide investors with a diversified

portfolio designed to provide a balance of

income and long-term capital appreciation.

Seeks to provide investors with a diversified portfolio

designed to provide a balance between long-

term capital appreciation and income, with an

emphasis on long-term capital appreciation.

Seeks to provide investors with a diversified portfolio

designed to provide long-term capital appreciation and

some income.

Risk

Le

vel

Low Low Low to Medium Low to Medium Low to Medium

Retu

rn P

oten

tial

Risk Potential

Mackenzie ETF Portfolios

High

er

Higher

Low

er

Lower

Conservative Income

Conservative

Balanced

Moderate Growth

Growth

Fixed Income – target allocationEquity – target allocationActive Currency Management

25%

35%

25%

75%

65%

75%

50% 50%

60%

40%

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About Mackenzie ETFs

Mackenzie ETFs are cost-effective solutions that have grown to over $1.3 billion in assets under management since they launched in 2016.

Mackenzie ETFs offer three types of ETFs: Active, Strategic Beta and Traditional Index ETFs.

• Mackenzie Active ETFs are agile solutions that place asset management decisions in the hands of experienced portfolio managers. These ETFs are designed to seek strong risk-adjusted returns, improve risk management, while providing diversification.

• Mackenzie Strategic Beta ETFs are ‘Maximum Diversification’ solutions based on underlying indexes provided by TOBAM, a Paris-based asset manager and index provider. These equity ETFs were created to help protect an investor’s portfolio from concentration risks.

• Mackenzie Traditional Index ETFs provide pure market exposure to a range of asset classes based on underlying indexes provided by Solactive and China Securities Index Co., Ltd. They can be used as building blocks for portfolio construction and investment planning.

Why Mackenzie’s Asset Allocation Team

Headed by Alain Bergeron, the Mackenzie Asset Allocation Team is well recognized in the industry with over 70 years combined investment experience. The team aims to generate optimal returns and mitigate risks for investors through a sophisticated approach to portfolio asset management.

Mackenzie ETF Portfolios

Mackenzie’s Asset Allocation

Team

Mac

kenz

ie Str

ategic Beta ETFs

Mackenzie Active ETFs

Mackenzie Traditional Index ETFs

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Why Invest with Mackenzie

Mackenzie Investments is one of Canada’s leading independent asset management companies. We distribute investment products and services to individual Canadians through their advisors, and to institutions globally. In business since 1967, Mackenzie is known for innovative investment solutions, proven investment management expertise across all asset classes and investment styles, and a deep commitment to the value of professional investment advice for individual investors.

We are committed to the financial success of investors through their eyes. Proudly Canadian, Mackenzie is part of IGM Financial – the world’s ninth largest publicly-traded asset manager – and owned by Power Financial Corporation.

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Bring the ETF investing experience closer to you with Mackenzie ETF Portfolios. Speak to your financial advisor about Mackenzie ETF Portfolios today.

mackenzieinvestments.com/ETFportfolios

Commissions, trailing commissions, management fees and expenses all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The content of this brochure (including facts, views, opinions, recommendations, descriptions of or references to, products or securities) is not to be used or construed as investment advice, as an offer to sell or the solicitation of an offer to buy, or an endorsement, recommendation or sponsorship of any entity or security cited. Although we endeavor to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it.TOBAM Maximum Diversification Index Series data ©2018 TOBAM S.A.S. All rights reserved. “TOBAM” and “Diversification Ratio” are registered trademarks and service marks of TOBAM S.A.S. or its affiliates (“TOBAM”) and are used under license for certain purposes by Mackenzie Financial Corporation. Reproduction of the TOBAM data and information in any form is prohibited except with the prior written permission of TOBAM S.A.S. The Mackenzie Mutual Funds are not sponsored, endorsed, sold or promoted by TOBAM and TOBAM makes no representation regarding the advisability of investing in such fund. TOBAM does not guarantee the accuracy or completeness of any data and information and is not responsible for any error or omission or for the results obtained from the use of such data and information. TOBAM GIVES NO EXPRESS OR IMPLIED WARRANTY, INCLUDING, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.All rights in the CSI 300 Index vest in CSI. “CSI 300®” is a trade mark of CSI. CSI does not make any warranties, express or implied, regarding the accuracy or completeness of any data related to the CSI 300 Index. CSI is not liable to any person for any error of the CSI 300 Index, nor shall it be under any obligation to advise any person of any error therein. Mackenzie China A-Shares CSI 300 Index ETF is in no way sponsored, endorsed, sold or promoted by CSI and CSI shall not have any liability with respect thereto. The Mackenzie ETFs are not sponsored, promoted, sold or supported in any other manner by Solactive nor does Solactive offer any express or implicit guarantee or assurance either with regard to the results of using the Indices, trade marks and/or the price of an Index at any time or in any other respect. The Solactive Indices are calculated and published by Solactive. Solactive uses its best efforts to ensure that the Indices are calculated correctly. Irrespective of its obligations towards the Mackenzie ETFs, Solactive has no obligation to point out errors in the Indices to third parties including but not limited to investors and/or financial intermediaries of the Mackenzie ETFs. Neither publication of the Solactive Indices by Solactive nor the licensing of the Indices or related trade mark(s) for the purpose of use in connection with the Mackenzie ETFs constitutes a recommendation by Solactive to invest capital in said Mackenzie ETFs nor does it in any way represent an assurance or opinion of Solactive with regard to any investment in these Mackenzie ETFs.