Tax changes push Mackenzie to alter fund

By Staff | September 19, 2014 | Last updated on September 15, 2023
1 min read

Mackenzie Investments will change the investment objectives and strategies of Mackenzie Canadian Short Term Yield Class, on or about November 28, 2014.

As a result of tax law changes introduced in the 2013 federal budget, the fund can no longer rely on character conversion transactions to provide investors with tax-efficient exposure to money market investments. Therefore, the fund will invest substantially all of its assets directly in Mackenzie Canadian Money Market Fund. The Canadian Short Term Yield Class’s investment objectives and strategies will change to permit this.

Read: A smooth exit from character conversion funds

The fund will be renamed Mackenzie Canadian Money Market Class. The fund remains closed to new investment, except that investments in other Mackenzie Financial Capital Corporation funds may be switched into Series A or F of the Fund.

Read: Government extends transition time for character conversions

Mackenzie has gotten permission from securities regulators to change the investment objectives without investor approval. During the week of September 22, the company will send affected investors advance written notice of the changes. No action is required by investors.

To be consistent with all funds in Capitalcorp, the fund’s distribution policy is also changing so that dividends (if any) will be distributed annually instead of monthly.

Read: Last year’s tax traps staff


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