Mackenzie Financial Corporation (Mackenzie) launched a tax-efficient program on October 27, 2000, which gives its unitholders the freedom to move among thirty-two Mackenzie equity funds without realizing capital gains. Under the new structure, Mackenzie also launched two new innovative yield-funds—Mackenzie Canadian Managed Yield Capital Class and Mackenzie US Managed Yield Capital Class. Within the first month of the funds, Mackenzie raised approximately $150 million.
Under the program, Mackenzie investors can choose from up to thirty-two ‘Capital Class’ funds, or ‘switch funds’, that offer the same leading features of the underlying funds, but with the benefits of a tax-efficient structure. These funds include Mackenzie’s leading Canadian, US, and international equity funds plus various sector and specialty funds including the ‘Mackenzie Select Managers’ series. Mackenzie Capital Class Funds are described as being suitable for investors who hold their funds outside of registered accounts, for those who want the ability to switch among a broad range of equity funds without incurring capital gains, and for those investors concerned with long-term tax deferral.
A team of lawyers from Fasken Martineau DuMoulin LLP acted on behalf of Mackenzie on the transaction, including Stephen Erlichman, Nigel Johnston, Douglas Cannon, S. Bruce Blain, Jon Holmstrom, Jennifer Mazin and Peter Leonard.