Mackenzie Investments and TOBAM partner to offer mutual funds

Mackenzie Investments has partnered with Paris-based TOBAM to offer a set of mutual fund products that are designed to enhance diversification to reduce biases and unmanaged risks in a portfolio.

The introduction today of these mutual funds follows the launch of two Mackenzie TOBAM focused ETFs: Mackenzie Maximum Diversification Canada Index ETF (MKC) and Mackenzie Maximum Diversification US Index ETF (MUS).

TOBAM’s methodology selects individual stocks and their weights to reduce the correlations between individual holdings. In so doing, it utilizes a principle in investment management that all other things being equal, a portfolio with higher diversification has a higher risk adjusted return than a less diversified portfolio.

The mutual funds invest in the Mackenzie Maximum Diversification Index ETFs and may also invest a portion of its assets in other ETFs, or in securities directly.

Mackenzie High Diversification Canadian Equity Class: Offered in a corporate class structure, it allows Canadians to invest in their own country while diversifying beyond Canada’s top three market sectors: energy, materials and financials.

Mackenzie High Diversification US Equity Fund: Gives investors access to the world’s largest and most diverse stock market.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.