The 2013 budget proposed changes Canadian tax laws that impact the tax benefits of funds using character conversion transactions.
- Character conversion transactions under fire
- Fidelity, Sentry close capital-yield funds to new investors
This includes funds managed by Mackenzie Financial Corporation. Though the company will continue to assess the proposals, they’re now suspending further purchases of affected funds until there’s greater guidance from the federal government.
Transactions in place prior to March 21, 2013 are expected to remain tax-efficient until their expiration dates, which would benefit many of the Mackenzie funds.
This excludes its Sentinel Managed Return Class and Quadrus Fixed Income Corporate Class, whose transactions expire in 2013.
The funds listed below are expected to provide tax-efficient exposure to their underlying portfolios until 2014 or 2015 when the funds’ transactions expire.
The funds that will be closing to additional buyers are:
- Mackenzie Sentinel Canadian Short-Term Yield Class
- Mackenzie Sentinel Managed Return Class
- Mackenzie Sentinel North American Corporate Bond Class
- Mackenzie Sentinel Strategic Income Class
- Mackenzie Sentinel U.S. Short-Term Yield Class
- Quadrus Fixed Income Corporate Class
- Symmetry Balanced Portfolio Class
- Symmetry Conservative Income Portfolio Class
- Symmetry Conservative Portfolio Class
- Symmetry Fixed Income Portfolio Class
- Symmetry Growth Portfolio Class
- Symmetry Moderate Growth Portfolio Class