Toronto-based Mackenzie Financial Corp. simplifying its pricing structure and reducing fees, the investment fund company announced on Monday.
The company is lowering prices on 14 ETFs and seven mutual funds. Management fees for the ETFs will be reduced by between 0.15% and 0.05%, on or about Oct. 12. Effective immediately, Mackenzie has lowered the management fees on seven mutual funds by 0.05%.
In addition, Mackenzie will launch a tiered pricing series for RDSP investors. Beginning April 1, 2019, and the second Friday of every month thereafter, qualified households with a minimum of $100,000 with Mackenzie will be automatically switched into Series PWR.
Preferred pricing accessible to investors at $100,000
Earlier this year, Mackenzie lowered the minimum eligibility requirement for its preferred pricing on the Private Wealth Series from $250,000 to $100,000 per household, making the pricing more accessible to investors and more competitive. Households who reach a high-water mark1 of $100,000 are automatically switched to a series with lower management fees.
To complete the program’s automation, effective Jan. 2, 2019, if the high-water mark of a household enrolled in a preferred pricing series falls below the minimum eligibility requirement, the holdings will switch to an equivalent retail series. Investors can top up their investment back to the $100,000 minimum anytime to lower their cost of investing.
The list of funds affected by the firm’s announcement is available in the company’s news release.
New flat fee structure for all Preferred Pricing series within Laurentian Bank Group of Funds offering
Last week, Mackenzie announced today a new flat fee structure for all Preferred Pricing series within the Laurentian Bank Group of Funds offering.
“As a result of these changes most investors in those Preferred Pricing series will receive lower fees and no investor will experience a fee increase,” Mackenzie says in a news release.
The Preferred Pricing series will also be accessible to more investors, with a lower minimum eligibility requirement of $100,000 (from $250,000) per household, which is applicable to all funds other than the Mackenzie Private Wealth Pools.
The simplified pricing structure is expected to be available to investors in the Laurentian Bank Group of Funds on or around Nov. 23.
Also, effective Jan. 1, 2019, series LW6 will be renamed series LW5 and the fixed rate distribution on that series, and other series with a 6% fixed rate distribution, will change to a 5% fixed rate distribution.