Toronto-based Mackenzie Investments said Friday it will cap investments in 12 of its mutual funds in response to the government’s proposed changes to “character conversion transactions.”

Each of the funds offer investors the tax advantage of having regular interest income transferred into a capital gain through a derivatives strategy. In the March budget, the federal government proposed to end the use of such transactions.

The following funds are now closed to future investments:

  • Mackenzie Sentinel Canadian Short-Term Yield Class
  • Mackenzie Sentinel Managed Return Class
  • Mackenzie Sentinel North American Corporate Bond Class
  • Mackenzie Sentinel Strategic Income Class
  • Mackenzie Sentinel U.S. Short-Term Yield Class
  • Quadrus Fixed Income Corporate Class
  • Symmetry Balanced Portfolio Class
  • Symmetry Conservative Income Portfolio Class
  • Symmetry Conservative Portfolio Class
  • Symmetry Fixed Income Portfolio Class
  • Symmetry Growth Portfolio Class
  • Symmetry Moderate Growth Portfolio Class