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Toronto, May 20, 2021 – Mackenzie Investments (“Mackenzie”) today announced its intention to wind-up Mackenzie Financial Capital Corporation (“Capitalcorp”). This will impact its suite of corporate class funds, resulting in the merging of each into its corresponding trust fund equivalent, on a tax-deferred basis.
As a result, the corresponding Mackenzie Canada Life corporate class funds listed below (“the Funds”), managed by Mackenzie, will be merged into corresponding trust funds that will be managed by Canada Life Investment Management Ltd. (“CLIML”)[1].
Mackenzie believes the wind-up is in the best interest of investors since Capitalcorp is in a taxable position. Changes to tax legislation and evolving market trends have eliminated many of the benefits that were previously available to corporate class funds.
Each of the Funds will be merged into its equivalent trust fund, which has or will have a substantially similar investment objective.
Existing investors of the Funds as of May 7, 2021 will be mailed an investor notice on or about Thursday, May 27 and no action is required by investors. All costs and expenses associated with the mergers will be borne by Mackenzie. The mergers will take place on or about Friday, July 30, 2021.
[1] Mackenzie has requested a legislative amendment to the Tax Act to allow the Canada Life series of the Terminating Funds to be merged into new continuing funds that will be managed by CLIML. Although Mackenzie has not received any indication that the amendment will not be made, if the amendment is not granted or is granted after the Merger Date, the continuing funds will be managed by Mackenzie