Mackenzie Investments today announced a change to the investment strategy of Keystone Saxon Smaller Companies Fund to include an expanded exposure to income trusts.

Effective immediately, the fund will be able to invest up to 30% of its assets in the income trust sector.

“Investors are still looking for steady cash flow and we continue to see solid investment opportunities in income trusts — especially in the Canadian small- and mid-cap market,” says David Feather, president, Mackenzie Financial Services Inc. “This timely change will allow Keystone Saxon Smaller Companies Fund managers to capitalize on the strong value-based opportunities that exist in the income trust market right now.”

While Keystone Saxon Smaller Companies Fund is not restricted to investing in smaller companies, this amendment will increase the size of the fund’s investable universe of high-quality, profitable small and mid-capitalization businesses. The fund’s portfolio advisor employs a value-oriented approach to identify investments with sustainable earning power trading at low valuations.

The fund’s resulting broader investment mandate aims to improve its risk-adjusted return potential. Keystone Saxon Smaller Companies Fund is suitable to Canadian equity investors seeking long-term capital growth through exposure to the small and mid-cap sectors of the Canadian equity market.

Scotia Capital Markets Income Trust Total Return Index posted the following returns for 1 year, 3 year, 5 year and 10 year periods ending May 31, 2007: 2.3%, 21.9%, 21.3%, 14.9%.